The entry of Schroders, one of the UK's biggest pension fund managers, into catastrophe bonds is a significant step in the asset class moving towards the mainstream of UK pension fund investment.

In June, Schroders took a 30% stake in Zurich-based boutique Secquaero Advisors, and its new fund, launched this week, is the first result of their relationship: Secquaero's insurance expertise allied to Schroders' distribution muscle.