Asset Management Business
HSZ’s insurance-linked strategies offer a diverse range of investments in catastrophe risk markets that are not correlated with traditional asset classes.
The team proactively identifies new opportunities to take advantage of short-term market dislocations and closely monitors key risk parameters to optimize the risk and return profile. We believe that disciplined underwriting and comprehensive risk assessment can generate alpha and produce structural excess returns with low correlation to traditional asset classes. Our portfolio is flexible and focused, allowing us to adapt to changing market conditions.
Additionally, our unique ability to source and structure private investments in Asia complements peak peril investments and helps us maintain a well-balanced and diversified portfolio without sacrificing compensation for risk. This approach allows us to be selective and avoid acquiring diversification for the sake of diversification.
Our extensive range of ILS instruments offers investors access to a variety of options, and our expertise in modelling and exposure management allows us to construct portfolios that provide an attractive risk-to-reward opportunity for our clients.
Disclaimer
This newsletter is for information purposes only and has been provided to you upon request. It may not be reproduced or redistributed to any other person. The information and data presented in this newsletter are not to be considered as an offer or solicitation to buy, sell or subscribe to the Fund. This newsletter relies on information obtained from sources deemed reliable but it does not engage the responsibility of HSZ (Hong Kong) Limited or any other party mentioned in the newsletter. The value and income of any of the securities or financial instruments mentioned in this newsletter may fall as well as rise and, as a consequence, investors may receive back less than originally invested, including a loss of the amount invested. Risk factors are listed in the fund’s prospectus and are not intended to be reproduced in full in this newsletter. Investors should understand these risks before taking any decision with respect to these instruments. Past performance is neither a guarantee nor a reliable indicator of future results. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares. This marketing material is not intended to be a substitute for the fund’s full documentation or for any information which investors should obtain from their financial intermediaries acting in relation to their investment in the fund mentioned in this document. The latest versions of the Fund’s prospectus and fund contract, semi-annual and annual reports as well as the Key Investor Information Documents (KIIDs) must be read before investing. They are available free of charge at the office of the Management company, CAIAC Fund Management AG, Haus Atzig, Industriestrasse 2, FL-9487 Bendern. The depositary bank of the Fund is LLB AG, Städtle 44, FL-9490 Vaduz.
The products and services described herein are not available nor offered to US persons and must not be publicly offered to persons residing in Hong Kong, or any other country restricting the offer of such products or services.
Hong Kong: This document may be distributed only to persons who are “professional investors” as defined in the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and any rules made there under. Neither this document nor any Fund described herein has been reviewed by any regulatory authority in Hong Kong. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
Switzerland: This document may be distributed in Switzerland to institutional clients and professional clients, including high-net worth individuals (HNWI), who declare that they wish to be treated as professional clients. In Switzerland, the prospectus, the key information document (PRIIP KID) and the annual reports and the semi-annual reports are available free of charge from the Swiss Representative and Paying Agent: RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich branch, Bleicherweg 7, CH-8027 Zurich.
Korea: The Fund makes no representation with respect to the eligibility of any recipients of this document to acquire the interests in the Fund (the “Interests”) under the laws of Korea, including, without limitation, the Foreign Exchange Transaction Law and Regulations thereunder. The Interests have not been registered for public offering with the Financial Services Commission of Korea (the “FSC”) in Korea under the Financial Investment Services and Capital Markets Act of Korea, and the Interests may not be offered, sold or delivered, or offered or sold to any person for reoffering or resale, directly or indirectly, in Korea or to any resident of Korea except pursuant to applicable laws and regulations of Korea. Furthermore, the Interests may not be resold to Korean residents unless the purchaser of the Interests complies with all applicable regulatory requirements (including, without limitation, governmental approval requirements under the Foreign Exchange Transaction Law and its subordinate decrees and regulations) in connection with the purchase of the Interests.
Singapore: This document is not a prospectus as defined in the Securities and Futures Act, Chapter 289 of Singapore (“SFA”) and has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply, and this document should not be construed in any way as a solicitation or an offer to buy or sell any interest or investment referred to in this document. You should consider carefully whether the investment is suitable for you. The product named in this document is not authorised or recognized by the Monetary Authority of Singapore (the “MAS”) and none of its interests / shares / units shall be allowed to be offered to retail public in Singapore. This document may be distributed only (i) to persons who are “institutional investors” under section 304 of the SFA, or (ii) to persons who are “relevant persons” under section 305(1) of the SFA or persons pursuant to section 305(2) of the SFA if (and only if) this document forms part of the prospectus or information memorandum for the fund(s), and such distribution is otherwise in accordance withthe conditions specified in section 305 of the SFA.
Japan: This document has been prepared for product planning purposes and does not constitute an offer to buy, an undertaking, or a solicitation of an offer to buy financial products, nor does it intend to propose trade terms of financial products. No registration has been made or will be made under Article 4, Paragraph 1 of the Financial Instruments and Exchange Act of Japan, as amended (“FIEA”) with respect to the offering of the share because the offering of the share is made by way of a private placement only to qualified institutional investors as defined in Article 2, Paragraph 3, Item 1 of the FIEA (“QIIs”) in accordance with Article 2, Paragraph 3, Item 2(i) the FIEA. No shares may be transferred or assigned to any person that is not a QII.
Maneki UCITS Cat Bond Fund
Fund Description
The primary objective of the Fund is to achieve positive returns. The Fund invests in insurance-linked securities (“ILS”) of all kinds. ILS are instruments where the coupon and/or principal depend on the occurrence of insured events (e.g. natural disasters, pandemics, disasters caused by explosion or fire, aviation disasters or similar rare insured events). An insured event is a phenomenon that occurs at a particular time, at a particular place and in a particular manner, thereby triggering the payment of insurance claims.
Risk
The performance of insurance-linked investments depends mainly on the occurrence or rather non-occurrence of insured events such as natural catastrophes or man-made disasters. For additional information please refer to the disclaimer and the offering documents.
Fund Characteristics
| Inception date | March 10, 2022 |
| Structure | UCITS V |
| Domicile | Liechtenstein |
| Investment Manager | HSZ Group, Hong Kong |
| Management Company | CAIAC Fund Management |
| Depositary | LLB |
| Auditor | Deloitte |
| Financial year-end | December 31 |
| Distribution Type | Accumulating |
| Reference Currency | USD |
| Dealing Frequency | 4 times a month |
| Redemption Notice | 5 business days |
| Minimum Investment | Class I: 500,000 Class A: 1 unit |
ILS Diversified Ltd
Disclaimer
*All performance data in this document refer to the main share classes and excludes the performance of Designated Investments (Class S shares). Investor performance may differ based on the timing of their investments and their resulting allocation to S shares. The performance of S shares and the combined investor returns are available in the statements provided by the fund administrator.
Data for 2014 is partial year data. Source for all data and charts: ILS Advisers, AlternativeSoft, Eurekahedge.
The products and services described herein are not available nor offered to US persons and must not be publicly offered to persons residing in Hong Kong, or any other country restricting the offer of such products or services. This material has been furnished to you solely upon request and may not be reproduced or otherwise disseminated in whole or in part without prior written consent from ILS Advisers, a business unit of HSZ (Hong Kong) Ltd.. The information herein may be based on estimates and may in no event be relied upon. ILS Advisers does not assume any liability with respect to incorrect or incomplete information (whether received from public sources or whether prepared by itself or not). This material does not constitute a prospectus, a request/offer, nor a recommendation of any kind, e.g. to buy/subscribe or sell/redeem investment instruments or to perform other transactions. The investment instruments mentioned herein involve significant risks including the possible loss of the amount invested as described in detail in the offering documents for these instruments which will be available upon request. Investors should understand these risks before taking any decision with respect to these instruments. Past performance is no indication or guarantee of future performance.
Hong Kong: This document may be distributed only to persons who are “professional investors” as defined in the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and any rules made there under. Neither this document nor any Fund described herein has been reviewed by any regulatory authority in Hong Kong. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.
Switzerland: This document may be distributed only to persons who are “qualified investors” pursuant to art. 10 para. 3, 3bis and 3ter of the Federal Act on Collective Investment Schemes and art. 6 of its Ordinance. The Representative is Carnegie Fund Services S.A., 1204 Geneva. The Paying Agent is Banque Cantonale de Genève, 1204 Geneva. The Memorandum of Association, the Offering Memorandum and the financial reports, each in their latest version, and further information may be obtained from the Representative free of charge.
Korea: The Fund makes no representation with respect to the eligibility of any recipients of this document to acquire the interests in the Fund (the “Interests”) under the laws of Korea, including, without limitation, the Foreign Exchange Transaction Law and Regulations thereunder. The Interests have not been registered for public offering with the Financial Services Commission of Korea (the “FSC”) in Korea under the Financial Investment Services and Capital Markets Act of Korea, and the Interests may not be offered, sold or delivered, or offered or sold to any person for reoffering or resale, directly or indirectly, in Korea or to any resident of Korea except pursuant to applicable laws and regulations of Korea. Furthermore, the Interests may not be resold to Korean residents unless the purchaser of the Interests complies with all applicable regulatory requirements (including, without limitation, governmental approval requirements under the Foreign Exchange Transaction Law and its subordinate decrees and regulations) in connection with the purchase of the Interests.
Singapore: This document is not a prospectus as defined in the Securities and Futures Act, Chapter 289 of Singapore (“SFA”) and has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply, and this document should not be construed in any way as a solicitation or an offer to buy or sell any interest or investment referred to in this document. You should consider carefully whether the investment is suitable for you. The product named in this document is not authorised or recognized by the Monetary Authority of Singapore (the “MAS”) and none of its interests / shares / units shall be allowed to be offered to retail public in Singapore. This document may be distributed only (i) to persons who are “institutional investors” under section 304 of the SFA, or (ii) to persons who are “relevant persons” under section 305(1) of the SFA or persons pursuant to section 305(2) of the SFA if (and only if) this document forms part of the prospectus or information memorandum for the fund(s), and such distribution is otherwise in accordance withthe conditions specified in section 305 of the SFA.
Japan: This document has been prepared for product planning purposes and does not constitute an offer to buy, an undertaking, or a solicitation of an offer to buy financial products, nor does it intend to propose trade terms of financial products. No registration has been made or will be made under Article 4, Paragraph 1 of the Financial Instruments and Exchange Act of Japan, as amended (“FIEA”) with respect to the offering of the share because the offering of the share is made by way of a private placement only to qualified institutional investors as defined in Article 2, Paragraph 3, Item 1 of the FIEA (“QIIs”) in accordance with Article 2, Paragraph 3, Item 2(i) the FIEA. No shares may be transferred or assigned to any person that is not a QII.
Fund Description
The ILS Diversified Ltd. provides investors with returns that are uncorrelated not only to traditional but also to other alternative investments such as hedge funds, private equity or real estate. The fund invests in a well diversified global portfolio of high yielding instruments like catastrophe bonds and other insurance linked securities (ILS), industry loss warranties (ILW) and private re-insurance transactions. The investments are made indirectly through an optimized selection of specialist ILS managers.
Risk
The performance of insurance linked investments depends mainly on the occurrence or rather non-occurrence of insured events such as natural catastrophes or man-made disasters. For additional information please refer to the disclaimer and the offering documents.
Opportunities
- Uncorrelated, stable returns
- Built-in inflation protection
- Efficient and low cost
Fund Characteristics
| Inception date | April 1, 2014 |
| Type of Fund | Open end |
| Fund Domicile | Bermuda |
| Investment Manager | ILS Advisers, a business unit of HSZ Group, Hong Kong |
| Administrator | Horseshoe Fund Service Ltd. |
| Custodian Bank | Butterfield Trust (Bermuda) Limited |
| Reference Currency | USD, CHF, EUR, GBP, JPY |
| Minimum Investment | 25 units |
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Structuring and Arrangement of Securitized Reinsurance Transactions
We specialize in designing, structuring, and implementing long-term alternative capital solutions that create mutually beneficial relationships with regional cedants in Asia. Our approach revolves around close collaboration with cedants to gain a deep understanding of their specific business constraints and opportunities. Leveraging this understanding, we craft innovative solutions that align with the unique risk and return preferences of alternative capital providers.
Our extensive experience and expertise in comprehending, analyzing, and valuing the vast, diverse, and fragmented Asia reinsurance market enable us to act as a bridge, facilitating investments into the creative solutions required for the region. We take pride in our role as a catalyst, bringing new sources of alternative capital to support the emerging Asia region, which is grappling with the largest insurance protection gap.
While the Asia reinsurance market boasts some of the world’s largest players and is characterized by its significant size and rapid growth, it has yet to fully leverage the financing and capacity opportunities offered by the capital markets, unlike its counterparts in North America and Europe. This disparity presents HSZ with a substantial untapped opportunity, one that we are uniquely positioned to capitalize on and facilitate.
Specialist in providing alternative capital access and solutions to Asia Pacific’s leading cedants.
In summary, our focus lies in creating tailored alternative capital solutions that foster mutually beneficial partnerships with regional cedants in Asia. We draw upon our deep understanding of the market to bridge the gap between cedants and alternative capital providers, unlocking untapped potential and driving growth in the region.
ILS Index
The Eurekahedge ILS Advisers Index tracks the performance of the participating Insurance Linked Investment funds. It is the first benchmark that allows a comparison between different insurance-linked securities fund managers in the insurance-linked securities, reinsurance and catastrophe bond investment space.
The index is calculated and maintained by Eurekahedge. The index includes funds that allocate at least 70% of their assets in non-life risk. In order to compare the performance of the index with other asset classes or to see the constitutents please go to the Eurekahedge website.