Eaton Vance mutual funds benefit from strong reinsurance sidecar and ILS returns

Eaton Vance, part of Morgan Stanley Investment Management, has benefitted from the strong return environment in insurance-linked securities and reinsurance sidecar investments, with its allocations seemingly all accruing positive value.

We’ve reported before on three of the Eaton Vance mutual fund portfolio strategies that contain allocations to ILS and reinsurance sidecar strategies.

Last time, we noted the investment manager appeared to have made an upsized commitment to the Swiss Re Core Nat Cat Fund and a fresh investment into Munich Re’s sidecar vehicle Eden Re II.

Now, with data accessible for six months further ahead, as of October 31st 2025, the ILS and reinsurance sidecar allocations have all accrued additional returns, driving higher valuations for the investments Eaton Vance has made with leading reinsurance players.

As we previously reported, three of the Eaton Vance mutual funds have been seen to contain ILS and reinsurance sidecar strategies.

These ILS and reinsurance investment allocations are made for the Eaton Vance Global Opportunities, Global Macro and Global Macro Absolute Return Advantage fund strategies.

The beneficiaries are the Swiss Re managed Core Nat Cat Fund strategy, reinsurer Munich Re’s sidecar vehicle Eden Re II, re/insurer Everest’s sidecar and segregated account structure Mt. Logan Re, and reinsurer PartnerRe’s strategy, the PartnerRe ILS Fund SAC Ltd.

At October 31st 2024, these allocations amounted to a total investment of $206 million across the three Eaton Vance mutual funds, which rose to $256 million when we last reported on the data as of April 30th.

Now, the latest disclosure of data at October 31st 2025 shows the valuation of all the ILS and reinsurance sidecar investments as having risen to just over $300 million, a new high it appears.

We must clarify that Eaton Vance could have other allocations to these or other ILS funds and structures, within investment strategies that we have not seen any data for, so its overall allocation to the sector may be higher.

Over the year to October 31st 2025, the allocation by the three Eaton Vance funds to the Swiss Re Core Nat Cat Fund has risen from $26 million to $96.7 million.

The PartnerRe ILS Fund SAC is the next largest currently, having risen from $59.4 million to reach $68.91 million at October 31st 2025.

The allocation to Munich Re’s Eden Re II collateralised reinsurance sidecar vehicle increased slightly from $62.65 million to $68.15 million over the same period, but with some changes as older vintages matured while more recent ones accrued positive value.

It’s worth noting that Munich Re has now scrapped its sidecar program for 2026, so these Eden investments are likely to be running down and it will be interesting to see if Eaton Vance looks to replace them.

Finally, the allocation to the Mt. Logan Capital Management managed Everest Mt. Logan Re strategy increased from $57.9 million to $66.53 million over the twelve months to October 31st 2025. It’s worth noting the valuation on this strategy had dipped to $47.5 million at April 30th 2025, suggesting either a top-up was made or that it performed particularly strongly through the last few months of record.

All four allocations to these ILS and reinsurance sidecar strategies have increased in value over the last year.

But, looking at the individual Eaton Vance funds and comparing their holdings in these ILS and reinsurance structures to their costs shows just how much positive value is being accrued.

The Eaton Vance Global Opportunities Portfolio has the largest holdings across these strategies, which it reports as having cost $141.47 million, but reported their valuations at $201.4 million at October 31st last year.

The Eaton Vance Global Macro Absolute Return Advantage Portfolio has the next largest ILS and reinsurance holdings, reported to have cost $67.75 million but being valued at $81.1 million as of the latest reported data.

Finally, the Eaton Vance Global Macro Portfolio reported the cost of its ILS and reinsurance holdings across these strategies as $14.12 million, but their latest valuation as $17.8 million.

Each of the three Eaton Vance funds allocate to all four of the mentioned reinsurance sidecar and ILS strategies.

Eaton Vance provides a good example of a large multi-asset class investment manager integrating reinsurance-linked returns within some of its strategies and funds.

It seems to prefer alignment with major global reinsurance firms as its method of accessing the relatively uncorrelated returns that ILS and reinsurance investments can offer to multi-strats, understanding how that can be additive to its multi-class portfolios.