A fund run by Bermuda insurance-linked securities fund manager Nephila Capital has attracted a $50 million investment from Ipac Asset Management, according to the Artemis.bm website.

Nephila uses catastrophe bonds, industry loss warranties and reinsurance contracts to construct portfolios.

The Ipac investment went to the Nephila-managed Palmetto Australian Unit Trust.

Ipac chief investment officer Jeff Rogers said the investment in Palmetto continues Ipac's strategy of diversifying the economic drivers of return in its clients' portfolios.

"To be successful in this sector, you need expertise in risk management and the capacity to access a wide variety of insurance-linked exposures," Mr. Rogers told Artemis.

"Our research identified Nephila Capital as a strongly resourced manager [which is] well-positioned to deliver a portfolio offering an attractive trade-off between return prospects and risk."