New York-based City National Rochdale Investment Management is planning to launch a new closed-end fund that will focus on reinsurance and insurance-linked securities investments (ILS), according to filings with the U.S. Securities and Exchange Commission.
The City National Rochdale Reinsurance Premium Fund plans to invest 80% of its net assets in reinsurance related securities, including ILWs and event-linked bonds, according to filings. In addition, the fund will used structured equity-linked investments tied quota share arrangements and swaps. The filings do not list the managers of the fund.
The closed-end product will be structured as an interval fund, offering quarterly repurchases of an minimum of 5% of the fund’s outstanding shares typically at net asset value (NAV).
Total operating expenses for the fund are listed as .93%, including a .50% management fee, a service fee of .25% and “other expenses” of .22%. The filings say the fund does not plan to institute a repurchase fee.
Rochdale will join other ILS closed end fund providers such as Pioneer Investments and Stone Ridge Asset Management using closed-end interval fund structures to investment in catastrophe risk. Interval funds allow managers to control sell-offs in illiquid investments by limiting investors ability to cash out at certain “intervals” during a year.
City National Rochdale has $30.7 billion in assets under management and is subsidiary of RBC USA, which in turn is owned by of Royal Bank of Canada.
Representatives from Rochdale did not return a request inquiries.
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