Bermuda-based asset manager, PRP Performa Ltd, has launched a new high-yield fund designed for captive and re/insurance firms. According to the company, the Performa HY Fund, gives traditional fixed income and equity investors a way to gain diversification and optimise the risk/return profiles of their balance sheets.

The Performa HY Fund is sub-advised by Seix Investment Advisors, a $26 billion fixed income investment management firm with more than $13 billion in high-yield mandates. The Performa HY Fund will focus on investments in the healthiest segment of the high-yield market and seeks to achieve superior risk adjusted returns over the long term.

“The Fund expands Performa’s investment options and asset allocation platform available to our offshore clients,” said Hugh Barit, chairman and CEO of Performa. “We strive to continually be proactive when it comes to providing comprehensive asset allocation advice and balanced portfolio management solutions. The Performa HY Fund is yet another way for us to provide the small-to-medium size insurer with institutional quality, customised solutions with a highly personalised approach.”

David Kilborn, CIO, added: “Yield has always been a significant driver of long term returns for bonds and equities. The high yield market consistently shows a long term ability to absorb short term market volatility because of its basic yield cushion. When evaluating potential future returns among asset classes with similar or greater risk profiles, high yield stands out today because of these features and its relative price.”

Performa is one of the largest non-bank financial services institutions in Bermuda, with their primary function being fund management for captive insurance and re/insurance companies.