Clariden Leu closed access to their flagship catastrophe bond funds earlier this year in June. The reason given at the time was that the volume of new issuance in the primary cat bond market was too low to give investors the opportunities the fund was designed for.
The lack of fresh catastrophe bonds even spurred Clariden Leu on to issue their own cat bond lite in order to get fresh capacity for their existing insurance-linked security investment clients.
However, the second half of 2010 has presented a good amount of new cat bond issuance and Clariden Leu say that the signals in the market are showing signs of a continuing strong issuance activity going forwards. This means the fund management team have been able to secure increased investment levels in the asset class in the last few months and they foresee sufficient investment opportunities in the future to have been able to reopen the fund to new subscriptions.
They say that an additional 20% of the funds value will be made available to investors and we expect that new volume to be snapped up pretty quickly particularly as it is bound to include some good diversification opportunities from recent cat bond transactions.