Bennelong Funds Management and Leadenhall Capital Partners have launched the LCP Insurance Linked Securities Fund.

The pair announced last year that they were working on the investment product as part of a distribution agreement.

They say the fund will invest in catastrophe bonds, offering institutional investors in Australia and New Zealand access to insurance risk for natural disasters such as hurricanes, floods and earthquakes.

“With insurance premiums increasing globally in recent times, an ILS strategy like this can really benefit investors, as the higher premiums are passed through,” Bennelong CEO John Burke said.

“The Australian market has had limited access to these assets, and the current market environment presents an attractive opportunity.”

Leadenhall managing partner Lorenzo Volpi says the arrangement with Bennelong has allowed the business to “introduce a product that not only diversifies portfolios but also brings innovative investment opportunities to Australia and New Zealand”.