The Securis I fund run by Securis Investment Partners shrank by 28 percent throughout 2018 due to losses and investor withdrawals, falling to under $1bn by year-end, with a further $200mn due to be redeemed in July and October 2019.
However, the manager’s newer non-life fund came through last year’s catastrophe events with more limited losses and took in new subscriptions throughout the year, growing by just over a fifth to reach $1bn.
The figures were disclosed in public annual reports for both vehicles.
Overall, the reports show total Securis assets under management fell 6 percent from $6.15bn in January 2018 to $5.8bn heading into 2019. This implies that inflows into other products partly offset redemptions, which included the closure of a $1.5bn one-year fund raised after Hurricane Irma.
The London-based firm’s reduced capacity in 2019 – along with other ILS peers – has contributed to a tightening market.
Within the Securis I master fund, redemption and subscription activity throughout 2018 resulted in a net $236mn outflow of assets.
The fund made a 10.08 percent investment loss in 2018, due primarily to the cat events that hit last year, including Typhoon Jebi, hurricanes Michael and Florence, and US wildfires.
This equated to a $135.9mn net drop in assets over the course of 2018, including a $27.7mn write-down taken after 31 December but before the date the results were released.
This meant Securis I shrank from $1.3bn in January 2018 to $956mn at year-end, with trapped capital tying up $110mn of these assets.
The firm was initially due to pay back another $268mn in July and October redemptions this year, but it is understood that the requests have now fallen to just over $200mn.
Even after the recent disaster events, the fund’s performance remains positive over the longer term, having delivered cumulative returns of 101.9 percent since its inception in October 2005. It took a 19.4 percent loss in 2017 due to the hurricane events of Harvey, Irma and Maria, and saw small net outflows of $4.6mn that year.
The firm’s non-life fund fared better during the 2017/18 catastrophes, and took in $227mn of net new inflows throughout last year.
The non-life fund made a more minor loss of 1 percent last year, following a 0.9 percent loss in 2017. its 2019 performance to date stands at a gain of 0.62 percent.
The flagship Securis I fund made up around 16 percent of the manager’s total assets under management by year-end 2018.
The open-ended fund invests in both life and non-life risks. Securis also manages other life, non-life and cat bond vehicles.
The manager had expanded significantly after 2017’s Hurricane Irma, with the launch of its one-year opportunistic fund enabling it to grow its market share in Florida and other zones in 2018 renewals.
Investors in most share classes in the Securis I fund pay a 2 percent management fee and a 20 percent incentive fee on performance gains. The non-life fund, launched in mid-2012, attracts base fees varying by mandate size of 0.5 to 0.75 percent, with no performance fees applicable.