The group of disaster bond funds within the UCITS format have already reached a year-to-date return of 12.1% by November fifteenth, because the Plenum CAT Bond UCITS Fund Indices continues to display the very engaging returns attainable from cat bond investments.
Ever since this UCITS disaster bond fund Index was dented by hurricane Milton, a dent that was shortly recovered, the returns of those cat bond methods has continued to be very engaging for buyers.
Within the final month, the common return of this Index, that tracks UCITS cat bond fund returns, had reached a formidable 1.48%.
Decrease-risk cat bond funds averaged 1.18% for the month, whereas higher-risk cat bond fund methods averaged 1.59% for the interval.
That has now helped to drive the Index common return for 2024 to-date to above 12%, hitting 12.1% after this Index was priced on November fifteenth.
Which is traditionally nonetheless very engaging and solely trailing the file set in 2023, as you’ll be able to see within the chart beneath (click on the chart for an interactive model).
At this stage of the 12 months, with only a month and a half of returns to be added and hurricane seasonality tapering off, it appears possible this UCITS cat bond fund Index won’t beat the file 14.88% annual return set final 12 months, nevertheless it ought to get fairly near that stage.
Most impressively, the full-year return for 2024 of this UCITS disaster bond fund Index is sort of assured to be greater than double the second-highest seen, which was 6.28% again in 2013.
Which simply goes to point out how traditionally engaging disaster bond market returns proceed to be in 2024.
Yr-to-date, the lower-risk group of UCITS cat bond funds averaged an 11.96% return and the higher-risk cohort 12.18%, by November fifteenth.
Over the past twelve months, to that very same date, the common return throughout all of the UCITS cat bond funds as reported by this Index, was 13%, signalling a really wholesome 12-month stage of efficiency for the disaster bond asset class.
With simply over 5 weeks of the 12 months left to run, as we stated it appears unlikely this UCITS disaster bond fund Index will beat final 12 months’s file, however it is going to nonetheless file its second-highest stage in its fourteen 12 months historical past.
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.
Analyse catastrophe bond market yields over time using our new chart.
