Next Generation Absolute Return, the specialised (UCITS) investment management business domiciled in Luxembourg, has launched the Secquaero ILS Fund on May 2. As announced earlier this year the fund was approved by the Luxembourg regulators as a UCITS III compliant sub-fund of the Next Generation Absolute Return SICAV.

“The launch of the Secquaero ILS Fund is a testimonial to the Next Generation business which includes the careful selection of alpha generating boutique investment management firms to manage our funds. Boutique manager due diligence and selection is a key pillar of our business model and value proposition to investors”, states Fred Sage, managing partner of Decision Analytics Advisory Partners AG, the founder and operator of the Next Generation Absolute Return business.

Next Generation Absolute Return-Secquaero ILS Fund, is based on the non-UCITS track record and insurance expertise of Secquaero Advisors AG. The UCITS fund will invest in a broadly diversified portfolio comprised mainly of listed insurance linked securities and will seek to generate absolute returns with a low correlation to traditional assets. The fund’s investment manager is German based ACATIS Investment GmbH, while the Swiss based Secquaero Advisors will act as investment advisor.

Insurance-linked specialist Secquaero was founded by former Converium executives Dirk Lohmann and Hans-Peter Boller in 2007. Their fund management business was launched in 2008.

"Institutional investors, especially pension funds and pension insurers from Germany, Switzerland and Scandinavia are particularly interested in the Secquaero ILS fund”, say Dirk Lohmann.

“The fund will focus on the liquid end of the insurance-linked spectrum, with a stronger bias toward cat bonds, but also investing in other insurance risks which are compliant with the UCITS III rules”, according to Lohmann.