Independent asset management firm London & Capital has introduced an innovative new proposition for ‘Cell Captives’ i.e. smaller Captive Insurance companies. The firm’s ‘Managed Portfolio’ solution provides diversified, bespoke portfolios to SPCs (Segregated Portfolio Companies), and enables those companies to tap into investment returns previously accessible only by larger Captives, and to enjoy the economies of scale and benefits of diversification that result from the pooling of a number of separate accounts.
The ‘Managed Portfolio’ solution offers Cell Captives higher targeted returns, a low-risk investment approach, transparency of daily reporting and access to their own unique account – all delivered at low cost, and managed by an investment manager with more than 20 years of experience running diversified portfolios and deep expertise in the Captive space.
Established in 1986, the London-based firm has been managing Captive assets since 2005 when Partner, William Dalziel – a 30 year veteran of the industry – established its Captive division. Until now, London & Capital’s Captive mandates have been in excess of $5m, and typically invested in Cash and Fixed Income. By way of example, the firm’s ‘Balanced Strategy’ for Captives – which is invested 85% in Fixed Income and 15% low-risk Equities – has returned in excess of 9.6% this year (at 30 September 2012). The Strategy boasts a very low level of volatility, and in line with a typical Captive’s requirements, can be liquidated within just a few days, if required.
The new solution integrates the services of the Investment Manager, Custodian and Insurance Trustee, together with independent portfolio valuation and reporting functions on-line, to provide transparency over portfolio risk, compliance, liquidity and cost. This enables the Cell to exercise complete control over its assets, achieving the highest standards of corporate governance.
Commenting on the new proposition, William Dalziel said, “The Captive Insurance industry has always been innovative, and continues to develop ways to make its services available to a wider range of potential Captive owners”. Examples are SPCs; multiple cell structures are today a well-established feature of the Captive landscape, and enable medium-size enterprises to benefit from owning a Captive, while controlling costs. “We can now also offer Cells the type of portfolios and returns previously only available to larger players, ensuring their capital contributes to offsetting the cost of their insured risks. We are able to cater for Cells with as little as $200,000 to invest, and deliver a service based upon the very same investment philosophy and asset allocation models as large Captives enjoy.”
