Catastrophe bond fund news

Despite major catastrophe events that struck around the globe in April 2016, the average return across the group of insurance-linked securities (ILS) and reinsurance linked investment funds tracked by ILS Advisers was 0.39% for the month, as losses appear limited from these events.

The average return across the group of insurance-linked securities (ILS) and reinsurance linked investment funds tracked by ILS Advisers was 0.42% in March 2016, which is above the long-term mean for the month helping to take the first-quarter ILS fund average return to 1.17%.

An issue has been bubbling away in the background of the catastrophe bond and ILS fund market since late 2015 which has the potential to impact the way managers of UCITS catastrophe bond funds deal with diversification.

Insurance-linked securities (ILS) and reinsurance linked investment funds reported their strongest performance since September, returning an average of 0.54% in February 2016, as some adjustments to loss reserves flowing through to boost the months performance.

London headquartered specialist insurance linked securities (ILS) and reinsurance investments manager Securis Investment Partners has launched the Securis Catastrophe Bond Fund, a sub-fund of Northill Global Funds ICAV.

Insurance-linked securities (ILS) investment funds started 2016 with a below average 0.23% average return for January, as pressure on catastrophe bond prices affected some funds, while price declines across reinsurance markets continue to weigh on performance.

The average return of insurance-linked securities (ILS) funds in December was just 0.07%, as the severe weather events in the month and year hit private ILS and collateralised reinsurance deals. Meanwhile the full-year 2015 average ILS fund return managed just 4.22%.

The average return of insurance-linked funds in November 2015 reached 0.31%, taking the return for the year to 30th November across a group of 32 ILS, reinsurance linked and catastrophe bond funds, to 4.15%.

Seasonal factors and a likely loss for the catastrophe bond market from MultiCat dragged down the average ILS fund return in October, across a group of 32 ILS, reinsurance linked and catastrophe bond funds, to just 0.26%.

ILS Diversified Ltd., a fund-of-funds strategy which invests in an actively selected range of insurance and reinsurance linked investments funds, has seen impressive performance in 2015 to-date, outperforming its benchmark Index and demonstrating the benefits of the strategy.