Investment Services

Just as joining a member-owned group captive gives companies control over their insurance destiny, access to this investment fund offers captives control over their investments.

The captives that work with Captive Resources (CRI) have exclusive access to a Cayman Islands domiciled mutual fund. This investment fund was established to offer the captives a preferred investment vehicle that provides improved returns with a balanced risk profile.

The fund’s significant scale allows it to engage many of the world’s best-in-class investment advisors to manage its highly diversified portfolio of high-quality securities at low institutional fees. The fund provides monthly subscriptions and liquidity and has an excellent credit advance rate. This high credit advance rate allows participating captives to keep nearly all of their capital investment while maintaining only minimum balances of low-yielding cash to pay frequency claims and operating expenses.

Growth of the Fund

Since its inception, the fund has had an average annual return of 6.04 percent, which compares favorably to 3.9 percent earned by intermediate investment-grade bond funds that a captive could directly invest in. Since the fund’s founding in 1994, it has achieved many milestones and has grown steadily to its current $6.7 billion assets under management (AUM) through investments from its 36 shareholders (as of Q2 2021).

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6.04%

Annualized Return Since Inception

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$6.7B

Assets Under Management

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36

Shareholders

Investment Fund Management

The investment fund's Board of Directors is made up of representatives from the captive shareholders, which gives the captives direct insight and control over the fund’s management. Under the guidance of its Board of Directors, the fund is specially designed to meet the investment objectives of the group captives to:

Captive Participation

Any captive that works with CRI may invest by buying mutual fund shares. As a captive increases its investment into the fund, it is able to participate at higher levels of management. Once a captive has invested $10 million in the investment fund, it is eligible for a seat on the Board of Directors.

Asset Allocation

To achieve its investment objectives, the fund’s asset allocation includes global fixed income (50 percent), equity securities (40 percent), and alternative assets (10 percent). The fund further diversifies with sectors or styles managed by world-class investment advisors for each type of investment. The Board of Directors establishes limits to each asset class and sets sector and style diversification guidelines. As a multi-manager fund, this investment fund can rebalance between sectors and asset classes to maintain a balanced risk.

Sound Management Practices

A dedicated Chief Investment Officer (CIO) — along with investment professionals at CRI — continually reviews the fund’s holdings to ensure compliance with investment guidelines. Supporting the investment objectives, the fund follows tried-and-true risk management practices, including:

CRI’s Role

As the consultant to the investment fund, CRI provides advisory and consultative services with respect to the coordination of the fund’s many service providers. CRI’s dedicated investment team monitors the fund’s holdings to ensure fulfillment of Board-approved investment guidelines. And, our finance, accounting, and legal/compliance professionals support the fund by ensuring it meets the highest standards for mutual fund administration and regulatory requirements.

CRI also prepares and distributes monthly and quarterly performance reports, holds quarterly Investment Committee conference calls, and organizes the fund’s meetings and workshops.