Having continued to develop their belongings beneath administration in latest months, UCITS disaster bond funds as a bunch have now grown their share of the general cat bond market to a brand new excessive, at 27% of threat capital equipped.
As we reported not too long ago, by the top of the third-quarter of 2024 the cohort of catastrophe bond funds in the UCITS format had grown their combined assets under management to more than $13 billion for the first time ever.
The UCITS cat bond funds added $840 million to their mixed AUM over the three months to September thirtieth this 12 months.
Driving the continued progress of the UCITS cat bond market, has been profitable capital elevating by cat bond fund managers, in addition to the buildup of coupon earnings which have additionally helped to bulk out the market.
When we last reported on the share of the cat bond market supplied by UCITS cat bond funds, on the finish of the first-half of this 12 months the UCITS disaster bond fund methods have been supplying $12.2 billion in capital, which made up 25% of the cat bond market’s excellent issuance, by Artemis’ measure.
Simply three months on, the UCITS cat bond fund methods have added greater than $800 million in new capital, lifting their mixed AUM to $13.05 billion, which takes their market share as much as 27% as of the top of Q3 2024.
Analyse UCITS catastrophe bond fund assets under management using our charts here.
Impressively, the mixed belongings of UCITS cat bond funds has now doubled since across the center of 2020.
This has considerably outpaced the general progress of the disaster bond market, which since that very same time has grown by roughly 45%.
Maybe extra spectacular nonetheless has been the expansion of the UCITS cat bond fund methods over 2024 to date.
UCITS cat bond fund AUM has risen by greater than 19% because the finish of 2023, to achieve its finish of Q3 excessive of $13.05 billion.
Over the identical time frame, the overall catastrophe bond market, as measured by Artemis, has increased in risk capital outstanding by 6%.
In consequence, over the previous couple of years, these UCITS cat bond fund methods have elevated their stature out there and have continued to throughout 2024 to date.
The expansion of the UCITS cat bond methods is predicted to proceed, so long as the cat bond market continues to develop.
Traders stay very interested in disaster bond returns right now, with a key driver being latest historic and improved efficiency. In consequence, these funds and cat bonds general ought to stay in favour for traders, which is able to inevitably drive extra inflows.
Reflecting this, the Plenum CAT Bond UCITS Fund Indices have delivered a median return of 10.77% in 2024 to date.
With the catastrophe bond market pipeline now reopened because the US wind season attracts to its shut and the cat bond market yield remaining at a traditionally excessive stage, this group of UCITS cat bond funds ought to proceed to develop, at the least in-line with the market.
Analyse UCITS catastrophe bond fund assets under management using our charts here.
You too can analyse UCITS cat bond fund performance, using the Plenum CAT Bond UCITS Fund Indices.
