Despite tighter spreads in the catastrophe bond market, Legal & General (L&G) intends to maintain its exposure to the asset class, with Alex Turner, Fund Manager Assistant, and Martin Dietz, Head of Diversified Strategies, noting the firm is prioritising portfolio integrity while awaiting more favourable entry points, rather than rotating out of the space.
Legal & General Investment Management maintains a cat bond portfolio that is split across a number of its diversified multi-asset strategy funds, with the company investing into individual cat bonds directly.
The organisation’s cat bond portfolio has reached hundreds of millions of dollars in size, although the precise amount remains undisclosed and difficult to track. Fund documents seen by Artemis suggest a minimum of US $400 million, but likely more.
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