Catastrophe bond fund news

The Ambassador mutual catastrophe bond fund strategy has continued to grow in the latest quarter of record, adding close to $30 million in assets in the period to October 31st 2023, to reach $127.7 million in net assets under management.

Leadenhall Capital Partners LLP, the London-headquartered specialist insurance-linked securities (ILS) and reinsurance linked investment manager, has announced a new key hire, with experienced Japan and Asia business development specialist Yuko Hoshino joining the company.

Catastrophe bond fund strategies in the UCITS format have delivered an impressive almost 16% average return for the full-year 2023, rising every single month during the period and setting a new record for this popular segment of the cat bond fund space.

Icosa Investments has been launched as new catastrophe bond focused asset manager, by co-founders the former Twelve Capital executive Florian Steiger and Swiss financial services and capital markets specialist Jordan Nickerson, Artemis has learned.

The total-return of the outstanding catastrophe bond market in 2023 reached a record level of 19.69%, according to full-year data from the Swiss Re Cat Bond Performance Indices.

Demonstrating the strong performance of catastrophe bond investments in 2023, Tenax Capital, the London based hedge fund investment manager that operates a UCITS cat bond strategy, is reporting a 17.9% net return in EUR for its fund for 2023.

Stone Ridge Asset Management, the New York based asset manager with an alternative risk premia focus, made well over $1 billion in reinsurance trading profits over the course of 2023, with record returns delivered to investors by both of its mutual insurance-linked securities (ILS) fund strategies, according to CEO Ross Stevens.

The catastrophe bond and related insurance-linked securities (ILS) market saw activity levels accelerate right the way through the busiest fourth-quarter in its history, resulting in a record year of issuance and market growth, Artemis’ new quarterly market report explains.

Plenum Investments AG, the Zurich-based specialist insurance-linked securities (ILS) and catastrophe bond investment manager, believes that performance for catastrophe bond funds should remain in the double-digits in 2024, at least for USD denominated cat bond fund strategies.

At a time when assets under management (AUM) have been climbing across alternative investment strategies and investors are carefully assessing their allocations and attracted to diversifying assets, the insurance-linked securities (ILS) niche has come out as top performer of the hedge fund world, Preqin has said.