Is Entropics an Asset Manager Just Like Everyone Else?
What makes Entropics stand out in the crowd? We are the first Nordic asset manager specialized in cat bonds, we emphasize responsible investments and are an independent manager.
Being the first asset manager in the Nordic countries specialized in cat bonds, we have plenty of opportunities to present the asset class as such and to dwell into the finer details of cat bond investments. Understanding the asset class, is however, only one factor to consider when pondering a cat bond investment. Lately, I’ve been asked by potential shareholders to describe the specific advantages of Entropics. I’ve responded by describing our case in five points:
1The knowledge and experience of our management team. Entropics was set up as a company specialized in ILS to start with. In addition to a solid competence in underwriting and insurance mathematics, the team encompasses experience from the hedge fund industry, business administration, meteorology, sustainability and communications.
2Our emphasis of responsible investments. Entropics invests only in bonds that we believe are beneficial to society and is, to my knowledge, the first asset manager specialized in cat bonds developing a policy for responsible investments specifically designed for cat bond investments. We are a signatory of the UN Principles for Responsible Investment (UN PRI).
3The Nordic countries are our home turf. Entropics is the only cat bond manager based in the Nordic region, firmly rooted in Swedish business culture and values.
4We are an independent asset manager. Entropics is fully owned by its eight partners, all working full or part time with the company. We are thus independent of issuers, banks and brokers.
5We are committed to transparency. Entropics has been widely recognized for the transparency in our portfolio management, reporting and business operation of the company.
To a greater or lesser extent, these points are, of course, applicable on many of our competitors as well. Any manager will, of course stress the competence of the investment team. However, few firms can demonstrate the level of independence, commitment to responsible investments and to transparency as Entropics can. And to date there is no other manager working from a Nordic domicile.