Twelve Capital’s UCITS catastrophe bond fund passes $1bn

Twelve Capital’s UCITS catastrophe bond fund passes $1bn

Twelve Capital, the Zurich headquartered insurance coverage and reinsurance linked financial investment fund manager, has almost doubled the size of its flagship UCITS disaster mutual fund in a year.At the end of January 2020, the insurance-linked securities (ILS) fund manager had actually reported that the Twelve Capitals Cat Bond UCITS fund had actually reached $550 million in assets under management.
Now, Twelve Capital said that the UCITS fund surpasses $1 billion, while its overall catastrophe bond properties under management have actually exceeded $2 billion.
Recent investor inflows have helped in the strong cat mutual fund development for Twelve Capital, which will have assisted the manager take benefit of the record issuance of the in 2015.
In addition, having capital inflows at this time indicates Twelve Capitals cat mutual fund will have had the ability to buy the higher-yielding cat bond issuance of the last 6 months or more, where risk-adjusted returns have increased on cat bonds, especially through the second-half of 2020.
That means the Twelve Capital feline bond portfolio has actually most likely seen its return profile improve, with higher-yielding brand-new issuance added without increasing the level of risk.
Urs Ramseier, CEO and co-founder of Twelve Capital, commented on the continued feline bond investment management success, “The Cat Bond UCITS offering has actually constantly been a cornerstone of our product range. Twelve is continuously investing to more enhance its investment process and extend its understanding on appropriate subjects, such as climate change or ESG. The performance achieved across products in different market stages highlights the advantage of investing throughout an insurance companys balance sheet, as it enables the recognition of industry trends early on.”
Florian Steiger, portfolio supervisor responsible for Twelve Capitals cat bond method, also said, “During the general market volatility in 2020, Cat Bonds have actually once again shown the advantage of investing into a property class that shows just very little connection to equity or credit markets. As spreads are still appealing, we anticipate additional development of the Cat Bond technique in the coming months.”
Twelve Capital also started to market its UCITS cat bond fund technique in Australia and New Zealand in the in 2015.

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