Embassy’s Ambassador mutual cat bond and ILW fund hits ~$1bn AUM milestone

The Ambassador US mutual fund strategy operated by Embassy Asset Management, that allocates its capital to catastrophe bonds and private insurance-linked securities (ILS) that we believe to be largely ILW’s, has reached a new milestone with its net assets under management practically at $1 billion.

The Ambassador Fund has grown steadily for Embassy Asset Management ever since the strategy was launched in September 2021, demonstrating the appetite mutual fund investors have for the catastrophe bond and related ILS asset class.

This largely catastrophe bond focused investment fund, that is structured under the US 1940’s Act mutual fund rules, had reached just over US $700 million in assets under management (AUM) by January 2026, while the strategy delivered an 11.61% return for the last year of record to October 31st 2025.

We last reported on this cat bond fund in July, reporting that its AUM had reached almost $839 million by April 30th 2026 and then grown its net assets further to approximately $893 million by the start of July.

Now, the latest reported data available on the Ambassador cat bond fund shows that it reached almost $923 million in total net assets by July 31st 2026, the last quarterly reporting date.

But, growth has continued again and data seen by Artemis shows this catastrophe bond fund reaching almost $967 million in AUM by August 31st 2026 and now sitting just a few dollars under the milestone $1 billion of assets mark as of September 24th.

That’s a testament to the successful fundraising and distribution of this Ambassador cat bond fund strategy by Embassy Asset Management, which has stimulated consistent growth for the fund over time.

Positive returns continue as well, given the lack of any impactful catastrophe events so far in 2026 for the cat bond market, which means investors in the Ambassador fund strategy will be benefiting from another year of attractive performance so far.

The portfolio managers of the Ambassador Fund are still utilising the Consulate Re structure to augment the diversification of the fund. It provides them with access to privately negotiated ILW contracts, in collateralized reinsurance form, which helps with with portfolio construction and optimisation, likely also delivering some attractive return opportunities to boost performance as well.

As of the latest official reporting data, at July 31st 2026, the Ambassador fund continues to have the majority of its assets invested into 144A catastrophe bonds.

Cat bonds made up around 12.7% of total net assets at that date, down slightly from 13% at April 30th.

Consulate Re industry loss warranty (ILW) or private reinsurance contracts amounted to $117.5 million at July 31st, their highest level yet for this fund, while catastrophe bond assets totalled $772 million and the rest short-term assets such as treasuries.

The Ambassador Fund now has 17 Consulate Re positions in its portfolio, all of which are Series 2026 issuances, so executed this year.

Back at April 30th, it had 16 Consulate Re positions and 2 were from prior years, which suggests the portfolio management team has continued to take advantage of the ILW and collateralized reinsurance market through the mid-year renewals.

The $1 billion milestone is a big one for the Embassy Asset Management team and the portfolio managers of the Ambassador Fund, as they have demonstrated their ability to sustainably build a large catastrophe bond portfolio over-time, while delivering attractive returns and attracting new mutual fund investors at the same time.