Funding supervisor Amundi US has continued to develop its most not too long ago launched devoted insurance-linked securities (ILS) fund technique, with the Pioneer CAT Bond Fund having greater than doubled in measurement in 2024, now reaching over $338 million.
This fast-growing cat bond fund technique has helped Amundi US to develop its total ILS belongings below administration throughout the 2 devoted ILS mutual fund methods it operates to $982 million.
The Pioneer CAT Bond Fund reached $84.2 million in assets by the end of October 2023, delivering its buyers an 11.20% internet asset worth (NAV) return from launch to that point.
The cat bond fund technique reached over $150 million in assets at its one year anniversary in late January 2024, then grew additional to $218 million by the top of February 2024.
Since then, the asset supervisor has been capable of entice extra capital inflows and invested them in new and older cat bond issuances, taking its Pioneer CAT Bond Fund portfolio to over $338 million presently.
That represents a greater than doubling of this cat bond fund’s AUM since January and an extra 55% in development because the begin of March, which is a formidable tempo for the technique.
Yr-to-date, the Pioneer CAT Bond Fund’s Class Y shares have delivered a 4.85% return, whereas the 1-year return at present stands at 12.04%.
In the meantime, Amundi US’ longer-standing devoted mutual ILS fund technique, the Pioneer ILS Interval Fund, has resumed development for the primary time in some quarters.
Having been as giant as $1 billion in internet belongings again in 2021, the Pioneer ILS Interval Fund had shrunk by latest quarters, however now the fund has grown for the primary time shortly.
The Pioneer ILS Interval Fund allocates its capital to quota share reinsurance preparations, reinsurance sidecars and personal collateralized reinsurance in the primary.
This ILS fund’s internet belongings had dropped to $626 million on the finish of January 2024, however within the final quarter of file grew again to finish April at nearly $651 million.
Which is an encouraging signal and we might see this fund technique rising additional on the subsequent reporting, given the mid-year renewals can have offered extra alternatives for Amundi US within the quota share and personal reinsurance area.
As well as, the Pioneer CAT Bond Fund stands well-positioned to develop additional later this 12 months, as soon as the cat bond issuance pipeline reopens.
