Elementum Advisors, LLC, the choice funding supervisor that specialises in collateralized pure disaster occasion reinsurance investments, has introduced the launch of a brand new higher-yield targeted, multi-investor disaster bond fund technique.
The Elementum Njord Cat Bond Fund, Ltd. was launched on February fifteenth and could have a give attention to investments into higher-risk premia US wind disaster bonds.
Via the Njord Cat Bond Fund, Elementum will present traders with entry to the returns of US Wind publicity that’s comparatively in-line with the general cat bond market.
US wind stays the dominant peril within the disaster bond market, with over three-quarters of it comprised of US Wind-exposed cat bonds as of January 2025, Elementum famous.
Njord’s structural method will likely be primarily based on an Elementum-managed portfolio with a 15-year observe document, the corporate mentioned, demonstrating its important expertise in managing cat bond investments.
Whereas the brand new cat bond fund technique will likely be open to all certified traders globally, Elementum famous that Njord will have the ability to present limitless fund capability to ERISA purchasers, which is restricted to US traders.
John DeCaro, Founding Associate of Elementum Advisors, commented, “The traits of a cat bond portfolio with US Wind publicity in line with the general market had been designed to attraction to a variety of traders, together with ERISA purchasers.
“Njord is one among many initiatives that Elementum is pursuing in 2025 to additional differentiate ourselves inside a aggressive ILS market.”
Elementum mentioned that the newly launched Njord Cat Bond Fund is aimed toward capitalising on the sturdy progress seen within the disaster bond market not too long ago, in addition to the market’s continued focus in US perils.
Therefore, Njord thoughtfully expands the Elementum product suite, the ILS supervisor mentioned, whereas responding to market traits.
Jeff Davis, Associate and Portfolio Supervisor for Elementum and the lead for day-to-day cat bond funding administration, mentioned, “Njord enhances Elementum’s current cat bond fund choices and gives traders a possibility to entry our differentiated funding method whereas additionally gaining an publicity profile that’s designed to be extra consultant of the broader cat bond market.”
