Amundi US Funding Administration has continued to expertise sturdy demand for its most lately launched devoted insurance-linked securities (ILS) fund technique, with the Pioneer CAT Bond Fund now surpassing $500 million in property beneath administration.
Because of continued success in elevating capital for the cat bond fund, Amundi US has now taken its devoted ILS fund property beneath administration to above $1.2 billion.
Whereas the funding supervisor now deploys round $2 billion of capital to cat bonds and different ILS alternatives in whole, by means of the 2 devoted ILS methods and its vary of multi-asset and glued revenue funds that incorporate ILS as a diversifier.
Recall that, Amundi US launched its dedicated cat bond mutual fund, the Pioneer CAT Bond Fund, in the first-half of 2023.
The Pioneer CAT Bond Fund reached $84.2 million in assets by the end of October 2023 and delivered its buyers an 11.20% web asset worth (NAV) return from launch to that point.
The cat bond fund technique surpassed $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, later reaching $338 million by early July this yr after which simply over $358 million on the finish of July 2024, earlier than reaching $426 million by October this year.
Capital elevating continued over current weeks, with the Pioneer CAT Bond Fund now reaching the $500 million in property milestone as of this week.
The funding supervisor has skilled spectacular demand for its first pure cat bond fund technique and Artemis spoke with Chin Liu, Amundi US’ Director of Insurance coverage-Linked Securities (ILS) and Portfolio Supervisor.
On the expansion seen within the cat bond fund technique Liu informed us, “We’ve got been happy with the continued market acceptance of our cat bond technique – each by newer buyers to this asset class in addition to long-term purchasers that select to have a extra liquid various to enrich their different ILS exposures.”
Including, on future ambitions for the technique, “Just like how we handle our devoted ILS funds, we need to proceed to develop these methods in a considerate and disciplined trend by attracting buyers who worth the long-term worth proposition of this structurally uncorrelated asset class to construct extra resilient portfolios.”
Liu went on to spotlight ILS market situations, saying, “As a really very long time investor on this asset class we, we proceed to stay very constructive on the attractiveness of ILS, each on an absolute foundation in addition to in comparison with many different conventional asset lessons.”
Amundi US now manages over $1.2 billion in ILS property throughout the devoted cat bond technique and its longer-standing devoted mutual ILS fund technique that allocates to a wider-range of reinsurance devices, the Pioneer ILS Interval Fund.
The Pioneer ILS Interval Fund reached $707 million in property lately, reflecting regular development by means of 2024.
With Amundi US additionally allocating to cat bonds and different ILS throughout quite a few the multi-asset technique funds beneath its administration, the corporate presently allocates round $2 billion of capital to the ILS asset class.
