Cat bond fund news

Insurance-linked securities (ILS) funds delivered another strong month of performance in February 2023, with every ILS fund represented in the Eurekahedge ILS Advisers Index reporting positive returns for the month, but with catastrophe bond funds leading the way.

The lower-risk group of catastrophe bond funds structured in a UCITS format have now seen their average returns recover back to levels last seen just prior to hurricane Ian, as the cat bond market continues to deliver strong returns in the wake of that storm.

Catastrophe bond returns remain very strong as the higher spread environment continues to deliver in 2023 and as a result the average return across UCITS cat bond fund strategies has now reached 3.07%, at March 17th.

Amundi Asset Management US, Inc. (Amundi US) aims to develop its newly launched Pioneer CAT Bond Fund into a strategy that can deliver double-digit returns in the current catastrophe bond market environment, while charging its investors a lower level in fees, Artemis has learned.

For low and middle income countries with an elevated exposure to natural disasters, catastrophe bonds can be a useful tool for financial planning, but the public sector side of the market needs to grow in order for governments to fully realise the potential benefits, according to analysts at DBRS Morningstar.

Catastrophe bond funds in the UCITS format have reported very strong returns year-to-date, with the average return across the main UCITS cat bond strategies now reaching 2.62% as of March 3rd.

Alpina Capital, the asset manager that took over the management and distribution of the Falcon Private Bank catastrophe bond funds, has hired Dr. Gregor Gawron, an experienced executive in the insurance-linked securities (ILS) space and a former manager of that cat bond strategy a decade ago.

2023 has the potential to be a transformational year for the insurance-linked securities (ILS) marketplace as it’s increasingly recognised as a viable and important component of a reinsurance strategy by buyers of protection, according to industry expert speakers at ILS NYC 2023.

Catastrophe bond funds in the UCITS format have reached another key milestone, with the combined assets under management (AuM) of the group of main UCITS cat bond funds surpassing $9 billion for the first time ever.

Insurance-linked securities (ILS) funds as a group have delivered a strong start to 2023, with an average ILS fund return of 1.18% for January, the second strongest performance for the month in the record of the Eurekahedge ILS Advisers Index.