ucits

The assets under management of the main catastrophe bond funds in the UCITS format increased by 4% over the first-quarter of 2024, to reach a new high of almost $11.4 billion by the end of the period.

For the first-quarter of 2024, catastrophe bond funds structured in the UCITS format have delivered their investors a 3.65% return, while the trailing 12-month cat bond fund return is running at 14.55%.

Twelve Capital, the Zurich headquartered insurance-linked securities (ILS) and reinsurance investment manager, has launched a new UCITS fund strategy that will be largely invested in catastrophe bonds, but also have a corporate bond component to offer investors a different risk-return profile, Artemis can reveal.

By March 1st 2024, catastrophe bond funds in the UCITS format had already delivered a 2.68% average return in 2024, as the cat bond asset class continues to benefit from strong demand that has been driving prices higher.

Catastrophe bond funds in the UCITS format have continued to experience growth as a group in early 2024, ending February with $11.24 billion in combined assets under management (AUM), while two UCITS cat bond funds have surpassed the $3 billion milestone this year.

Catastrophe bond funds were a bright spot in the alternative UCITS investment fund space in 2023, as cat bond funds expanded strongly at a time when the wider UCITS segment experienced approximately $38 billion in outflows, according to Kepler Absolute Hedge.

Catastrophe bond funds in the UCITS format experienced significant growth in assets under management in the final quarter of 2023, growing by 10.5% that period, to end the year with almost $11 billion of assets across this group of cat bond funds.

Catastrophe bond fund strategies in the UCITS format have delivered an impressive almost 16% average return for the full-year 2023, rising every single month during the period and setting a new record for this popular segment of the cat bond fund space.

The Plenum Investments Index that tracks the returns of catastrophe bond funds in the UCITS format has now reached over 16% for the last 12-months, while the year-to-date return has now reached 15.2% for 2023 to the end of November.

Catastrophe bond funds in the UCITS format have now delivered around 14% in returns year-to-date on average, while their assets under management as a group had recovered to more than $10 billion by the end of October 2023.