The Ambassador US mutual disaster bond fund technique operated by advisor Embassy Asset Administration has continued to increase within the busy cat bond market, driving its web belongings to a brand new excessive of $263 million by July.
The Ambassador cat bond fund was launched in the third-quarter of 2021 by investment advisor Embassy, which has a focus on non-correlated strategies and delivering income to its clients.
It’s the latest launch of a US mutual funding fund construction with a devoted disaster bond and insurance-linked securities (ILS) funding focus.
Having begun allocating capital to catastrophe bonds in the quarter to April 30th of 2023, while also renewing its first private ILW arrangement, the Ambassador Fund benefited from extra inflows to its disaster bond centered technique across the finish of final yr, which continued into 2024 as effectively.
Once we final coated the cat bond fund again in April, the Ambassador Fund had round $191 million in web belongings beneath administration.
In addition to disaster bonds, the fund had additionally begun to spend money on quite a few non-public ILS preparations, which have been trade loss warranties (ILW) beneath a construction named Consulate Re.
That has continued, as too have the inflows of investor capital, on account of which the Ambassador Fund had reached over $226 million in web belongings by the top of April, its final reported quarter, however has since then expanded additional to $263 million of web belongings as of this July.
In addition to new disaster bond investments made, another ILW funding has additionally been entered into, a Consulate Re 2024-5 transaction.
As of April thirtieth, the Ambassador Fund portfolio held $204.4 million in disaster bonds and an additional $22.8 million in most well-liked notes from the Consulate Re sequence of personal offers.
When it comes to efficiency, this mutual disaster bond fund technique delivered its buyers a ten.1% return for full-year 2023 (keep in mind it solely started allocating to cat bonds half manner via Q1 2023) and a 4.71% return to this point in 2024.
The rolling twelve-month return for the Ambassador cat bond fund at present stands at 11.46%, in accordance with Artemis’ information sources.
