Guardians appoint manager for investments linked to catastrophe insurance
POSTED ON: 2 February 2010
The Guardians of New Zealand Superannuation today announced the appointment of Elementum Advisors, LLC to manage a portfolio of catastrophe-linked securities. The initial size of the mandate will be US$125 million with potential to increase to US$250 million.
Catastrophe-linked securities transfer specific insurance-related risks to the capital markets. The risks relate to exposure to losses arising from natural events, typically hurricanes, earthquakes or windstorms. Investors receive ongoing income for assuming this risk and exposure to potential losses is capped. For more information about catastrophe-linked securities, see our Fact Sheet.
For more information please contact:
Paul Gregory, Head of Communications [email protected], 09 308 2041, 021 274 9994
About Elementum Advisors:
Elementum Advisors, LLC is an independent alternative investment manager specialising in natural catastrophe insurance linked securities. The firm was formed in 2009 and the key members of the team collectively have more than 40 years of experience in capital markets reinsurance risk-transfer products, including catastrophe bonds.
About the New Zealand Superannuation Fund:
The New Zealand Superannuation Fund, which commenced investing at the end of September 2003, is designed to reduce the tax burden on future New Zealand taxpayers of the cost of New Zealand superannuation. An ageing population means the cost of providing New Zealand superannuation is expected to double over the next 50 years. To prepare for this, the Government has made contributions to the Fund while the cost of superannuation is relatively low. The Fund will invest the money on a prudent but commercial basis and the Government will begin to make withdrawals from 2031, when the cost of superannuation has increased. As at 31 December 2009 the value of the Fund was NZ$16.0 billion. For more information visit www.nzsuperfund.co.nz