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ILS funds ship “significantly excessive” 1.16% return for January 2024


The typical return of insurance-linked securities (ILS) funds tracked by the Eurekahedge ILS Advisers Index reached 1.16% for January 2024, which was a “significantly excessive” efficiency for what is usually a slower month missing in peak peril seasonality.

ILS fund and cat bond fund performance returns IndexWith this Index having delivered a return for full-year 2023 of 14.11%, the brand new yr has began off significantly properly although, beating every other January since 2007.

Particularly robust demand for disaster bonds has continued to drive cat bond costs and due to this fact fund returns increased than maybe anticipated for the time of yr.

That helped pure cat bond funds outpace the personal ILS funds that put money into collateralised reinsurance and retrocession, for the primary month of the yr.

The Eurekahedge ILS Advisers Index returned 1.16% for January 2024, however pure cat bond funds did barely higher than the common at 1.2%.

The personal ILS fund cohort returned a median of 1.13% for the month, with no main disaster loss impacts to dent efficiency.

Consequently, the entire ILS funds represented within the ILS Advisers Index delivered a optimistic return for the month.

ILS fund efficiency ranged from +0.34% to +1.89% for January 2024, whereas the general Index return was the best for any January since 2007.

This reveals that ILS and cat bond returns stay close to the highs achieved a yr in the past, though it will be fascinating to see how this develops throughout the yr.

ILS Advisers famous that January was an excellent month to begin the yr, for ILS buyers.

“That is significantly excessive for a month which bears much less pure disaster danger because the wind-storm danger is low right now of the yr,” the corporate defined.

ILS fund and cat bond fund performance returns Index

You’ll be able to monitor the Eurekahedge ILS Advisers Index right here on Artemis, together with the USD hedged model of the index. It includes an equally weighted index of 27 constituent insurance-linked funding funds which tracks their efficiency and is the primary benchmark that enables a comparability between totally different insurance-linked securities fund managers within the ILS, reinsurance-linked and disaster bond funding area.

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