The $29 billion Alaska Retirement Management Board (ARMB) hired Schroder Investment Management North America last month to run a $75 million insurance-linked securities allocation, according to board documents.
The documents added that Schroders is ”currently developing an investment vehicle for U.S investors,” although it did not detail if the assets will be dedicated to this new fund.
The hire is pending a favorable due-diligence review by Alaska’s third-party investment consultant, Callan Associates, and successful contract negotiations. According to a report funding for the allocation will come from cash.
Schroders attended an “education conference” sponsored by ARMB in October where it presented its approach to the ILS sector and the current environment.
“A diversified ILS portfolio is expected to generate returns that have a low correlation to other assets such as fixed income, equities, hedge funds, and commodities,” ARMB documents state. “Schroders indicates the securities have an attractive spread level and risk return profile as well as a floating rate coupon which can protect against rising interest rates.”
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