Quantum Group and Nucleus Euro-Advisers are launching a Luxembourg-regulated and domiciled fund investing in the European insurance sector.
The open-ended Sicav will invest primarily in bonds, convertible bonds and notes issued by small and mid-cap insurers, re-insurers, brokers and underwriters.
Those launching the Nucleus Assurance Fund 1 said they expect its investors to benefit from a trend among European governments to privatise their pension and health systems, as well as from growing longevity, which is seen as obliging individuals and their governments to invest more in private pension plans, health insurance and critical illness insurance.
Quantum Group is a Liechtenstein-based, pan-European insurance company, while Nucleus Euro-Advisers is a Luxembourg-based association of European financial intermediaries .
The companies say they believe their fund will be the first such fund out of Luxembourg to specialise in small and mid-sized insurance companies.
The Nucleus Assurance Fund will be a sub-fund on the Luxembourg-based KMG Sicav SIF open-architecture fund platform.
“The Fund will appeal to investors who understand the profitable outlook for the insurance business,” said Vincent Derudder, chairman of the sales and marketing committee at Quantum Group and also a Managing Partner of Nucleus Euro-Advisers. Derudder is also a director of KMG.
“Furthermore, following the credit crunch and the collapse of colossal global financial services firms such as Lehman Brothers, the man on the street no longer believes that big is beautiful and therefore the popularity of smaller, local insurance businesses should increase.”Derudder added.
The initial subscription period for Nucleus Assurance Fund 1 lasts until 29 April, its first dealing day.
FUND FACTS:
Name: Nucleus Assurance Fund 1
Domicile: Luxembourg
Minimum investment: €20,000
Type of fund: Open ended Sicav
Annual charge: 1%
Performance fee: none
Launch date: 29 April
Target return: 250 basis points above the ECB base rate
Websites: www.kmgsicavsif.com; www.nea.lu
