Funding supervisor Amundi US has celebrated the anniversaries of its two devoted insurance-linked securities (ILS) and disaster bond fund methods, the Pioneer CAT Bond Fund and the Pioneer ILS Interval Fund, which have collectively surpassed $1.35 billion in property underneath administration (AUM).
Recall that, Amundi US launched its dedicated cat bond mutual fund strategy, the Pioneer CAT Bond Fund, in the first-half of 2023.
Since then, the funding supervisor has been steadily constructing its property underneath administration within the fund to enrich its different ILS providing, the Pioneer ILS Interval Fund, which allocates to quota share reinsurance preparations, reinsurance sidecars and personal collateralized reinsurance offers.
In late January, we reported that Amundi US’ Pioneer CAT Bond Fund technique had delivered a 14.27% return in the year to October 31st 2024, whereas AUM within the technique had continued to develop via the tip of the 12 months.
The second anniversary of the Pioneer CAT Bond Fund was on January twenty sixth 2024, and the supervisor mentioned it “marked its second anniversary with an annualised complete return since inception of 14.44% via January thirty first, 2025,” whereas additionally noting that by the tip of the month, “the Fund had over $700 million in property underneath administration.”
For the Pioneer CAT Bond Fund’s Class Y shares, the 1-year complete return reached 14.23% as of January thirty first 2025.
The agency’s different devoted ILS fund technique, the Pioneer ILS Interval Fund, “marked its tenth anniversary with an annualised complete return of 5.21% via January thirty first 2025,” Amundi US defined.
The funding supervisor additionally famous that as of the tip of the month, “the Fund had $652 million in property underneath administration.”
Collectively, this now implies that Amundi US’ Pioneer CAT Bond Fund and its Pioneer ILS Interval Fund, have surpassed $1.35 billion in property underneath administration.
Chin Liu, Director of Insurance coverage-Linked Securities, Director of Mounted Revenue Options, and Portfolio Supervisor of Pioneer CAT Bond Fund and Pioneer ILS Interval Fund, commented: “We proceed to consider each of those differentiated fund choices are enticing choices for buyers looking for different revenue options.
“ILS has traditionally exhibited low return correlations to fairness and glued revenue markets, providing invaluable portfolio allocation and diversification advantages.
“Lots of the favorable market developments that we witnessed over the previous few years, together with extra demand from the insurance coverage trade for capital aid and elevated ILS yield spreads potential stay firmly in place getting into 2025.”
Jonathan Duensing, Head of Mounted Revenue, US, at Amundi US, mentioned: “Investments in Insurance coverage-Linked Securities and CAT bonds are a longstanding core competency of our fixed-income staff. We now have been happy with investor reception for this asset class and acknowledgment of potential funding advantages of allocating to the market section.”
With ILS and cat bond property additionally held in multi-asset technique funds as effectively, Amundi US’ complete ILS property underneath administration are possible someplace north of the $2 billion mark right now.
