Amundi US Investment Management’s dedicated insurance-linked securities (ILS) mutual investment fund has increased in size again during the last quarter, reaching a record size for the strategy of $1 billion in net ILS assets as of April 30th 2021.
It means that the Pioneer ILS Interval Fund is now larger than at its previous high-point, which was way back at July 31st 2018 when it hit $983 million in net assets under management.
The strategy which invests across catastrophe bonds, reinsurance sidecars, private collateralized reinsurance deals and quota shares, but as a 1940’s Act mutual fund structured in the interval style, had since that stage shrunk to as low as $793 million in net assets as of July 31st 2020, after catastrophe losses from consecutive years impacted the fund.
But steady growth soon recovered, as losses began to crystalise and be settled and Amundi Pioneer has now grown for three consecutive quarters, as it first stabilised and then got the opportunity to capitalise on market growth and its strong relationships, particularly in the quota share reinsurance deals it allocates to.
Then another quarter on, as of January 31st 2021, the total net asset haul grew to $937 million, a further 7% increase.
By April 30th 2021, the Amundi Pioneer ILS Fund had increased its total net assets again, growing a further almost 7% to end the period at just slightly under $1 billion.
So now, the Amundi Pioneer ILS Interval Fund is some 26% larger than it was at the end of July 2020, testament to the managers ability to raise new funds and also to the opportunities in ILS and reinsurance, with catastrophe bonds a particular driver in recent months, alongside continued expansion of its private quota share deals.