UK local authority pension fund manager the London Pensions Fund Authority (LPFA) made an investment of around £51 million in two of the reinsurance linked investment funds managed by Bermuda-based specialist Aeolus Capital Management Ltd.

The investment was made in the calendar year ending March 31st 2017, according to the latest information from the £5.3 billion London Pensions Fund Authority.

UK pension funds are increasingly becoming comfortable with the ILS and reinsurance linked asset class, with a growing number of authority and private pensions investing in ILS as they look for alternative sources of return which exhibit low levels of financial market correlation.

The investment is split across two ILS funds managed by Aeolus, the ILS manager that is now controlled by multi-strategy hedge fund manager Elliott Management Corporation after the firm acquired a controlling stake.

As at March 31st 2017 the LPFA had almost £20.5 million allocated to the Aeolus Property Catastrophe Keystone Fund LP, which is a higher-yielding ILS fund strategy that underwrites property catastrophe reinsurance and retrocession, and almost £30.7 million to the Aeolus Property Catastrophe Spire Fund LP, which underwrites a lower-risk, more remote portfolio of property catastrophe reinsurance and retro.

Read full news here: Artemis