Schroders is to offer insurance linked securities to institutional clients after acquiring a 30% stake in Secquaero Advisors, a Swiss insurance linked securities investment manager. Secquaero advises assets under management of around $280m.

Insurance-linked securities and products known as catastrophe bonds have values riding on insurance events. Their value hinges on bets against unpredictable events such as last year's Hurricane Sandy in the US. Pension funds account for 14% of investors in the asset class.