Swiss Re Insurance-Linked Fund Management

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Pioneer ILS Interval Fund returns 7.7% for the year, AuM rises by 11%


The Pioneer ILS Interval Fund, a dedicated insurance-linked securities (ILS) focused mutual investment fund strategy managed by Amundi Pioneer Investment Management, added almost 11% to its total net assets in the last quarter of record, while reporting an impressive 7.7% return for the full-year.

amundi-pioneer-logoMore impressive still is the fact that Amundi Pioneer’s flagship dedicated ILS and reinsurance linked investment fund made a positive return in every month during the year to October 31st 2020.

But perhaps most impressive of all, is the fact the Pioneer ILS Interval Fund returned 1.44% during the first-quarter, even when broader financial markets were facing significant volatility due to the COVID-19 pandemic.

The Amundi Pioneer managed ILS fund prides itself on active selection of partners to invest in, with over 62% of its investments in quota share sidecars, where it works closely with ceding companies to identify those it wants to partner and deploy capital to.

Alongside that, the fund allocates over 19% of its capital to other collateralized reinsurance layers, again with a strong focus on partner selection, almost 18% to catastrophe bonds and just under 1% to industry loss warranties (ILW’s).

The return of 7.7% for the year is impressive, given the last year has seen a steady flow of impacts and losses for some positions in the reinsurance market.

Amundi Pioneer’s strategy has largely managed to keep any loss impact purely attritional it seems, enabling it to deliver this level of performance for its investors.

It looks like the investment manager was able to attract more capital from investors to its dedicated ILS fund strategy during the last quarter of record, to October 31st 2021.

The Pioneer mutual ILS fund sat at at just under $793 million of total net assets at July 31st 2020, which was largely invested across insurance-linked securities (ILS), quota share reinsurance arrangements or sidecars and catastrophe bonds.

Amundi Pioneer was hoping to increase this and was anticipating its “largest window for the year” from a capacity perspective at that time.

Over the next three months it seems inflows were secured, as by October 31st 2020 the Pioneer ILS Interval Fund counted its total net assets as increasing by roughly 11% to $876.2 million.

We’d imagine the fund will have grown further by now, as Amundi Pioneer will no doubt have been hoping to deploy more investor capital into the January renewals.

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