Catastrophe bond fund news

The average return of insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond funds reached 0.24% in February, a month that saw catastrophe events around the globe erode ILS fund aggregate deductibles.

The insurance-linked investment fund universe got off to a slow start in 2015, with the average return of insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond funds recorded as a below average 0.4% in January.

The full-year numbers are now in for the Eurekahedge ILS Advisers Index which show that the average return for insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond funds in 2014 was 5.38%, which is below the long-term average.

The average return of insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond funds slipped to 0.13% in November, as lower performance of cat bonds, largely caused by the selling of short dated paper, impacted returns.

The first rating criteria has been published that specifically targets insurance-linked funds, including those investing in catastrophe bonds, ILS and collateralized reinsurance, by rating agency A.M. Best.

Insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond funds returned an average of 0.61% for the month of October, which is slightly above the long-term average, strong performance in the currently low-rate environment.

The average return of the insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond fund market reached its highest level of the year in September, at 0.86%, as impact from catastrophes on the asset class remained low.

Investment management firm AQR Capital Management LLC has registered its first catastrophe bond fund with the SEC, which would position the fund for launch to investors in 2015.

AZ Athenaum, a joint venture established in 2013 between Italian asset manager Azimut Holding SpA and Singaporean fund manager Athenaeum, is set to bring a UCITS compatible catastrophe bond fund to investors in Singapore and South East Asia.

The average return of the insurance-linked securities (ILS), reinsurance linked investment and pure catastrophe bond fund market jumped to 0.82% in August, the highest monthly return for ILS funds in 2014 but still only average compared to previous years.