For the first-quarter of 2024, disaster bond funds structured within the UCITS format have delivered their traders a 3.65% return, whereas the trailing 12-month cat bond fund return is operating at 14.55%.
It represents a slight slow-down from the first-quarter of 2023, when the common UCITS disaster bond fund return reached 3.95%.
However, at the moment these cat bond funds have been benefiting from a robust restoration of values in positions that had been negatively affected with mark-to-market actions after hurricane Ian, one thing not repeated this yr.
Though, there are some less-typical for the time of yr value results within the secondary marketplace for cat bonds, because the continued sturdy demand from traders has been driving costs greater and this has benefited cat bond fund returns by way of the first-quarter of 2024.
The Plenum Investments Index that tracks the returns of disaster bond funds within the UCITS format, the Plenum CAT Bond UCITS Fund Indices, has risen strongly by way of the primary three months of 2024.
As much as and together with March twenty ninth, the Plenum UCITS cat bond fund Grasp Common Index is now up 3.65% thus far this yr.
Analyse cat bond fund efficiency utilizing the Plenum CAT Bond UCITS Fund Indices, which tracks the efficiency of a basket of cat bond funds structured within the UCITS format and supplies a broad benchmark for the efficiency of cat bond funding methods. Click on the chart beneath for an interactive model and index improvement by week.
Whereas the Q1 return of those UCITS cat bond funds a yr in the past was slightly greater, 2024 remains to be the second-highest first-quarter return for these cat bond funds, representing a robust begin to the yr for these investing in cat bond fund methods.
The lower-risk group of UCITS cat bond funds delivered a 3.48% return to March twenty ninth, whereas the high-risk group have been at 3.76%, bating the Grasp Capital weighted model of the Index at 3.74%.
For March, all 4 of the Indices have been above 0.95% for the interval.
It’s fascinating to additionally take a look at the rolling 12-month return, to March twenty ninth 2024 for these UCITS cat bond funds.
The rolling 12-month return for the Grasp Common Index was 14.55%, for low-risk funds 14.15%, for high-risk funds 14.84% and on a Grasp Capital foundation it was 15.6%.
The complete-year 2023 return of the Grasp Common of those UCITS disaster bond fund indices was 14.88%, so a slight deceleration is clear, however that is nonetheless a really sturdy 12-month interval for cat bond returns, once more boding properly for investor returns from the cat bond asset class by way of 2024.
Analyse UCITS cat bond fund efficiency, utilizing the Plenum CAT Bond UCITS Fund Indices.
Analyse UCITS catastrophe bond fund assets under management using our charts here.
