What kind of returns can I expect?

Är cat bonds really independent of equity?

How is my portfolio affected?

When should I enter the market?

What if interest rates increase?

Cat bonds from an investor perspective

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bonds for investors



Team specialized in insurance risks

Responsible investment

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Update on winter storm Riley’s impact on aggregate cat bonds

In early March, the winter storm Riley struck the US Mid-Atlantic coast with strong winds and massive snowfall. While it was an unusually severe storm, with rapidly decreasing pressures and hurricane force gusts, it would normally not affect any cat bonds.

How do cat bonds work?

Entropics Asset Management – Cat bond investments

Cat Bonds are securities that transfer insurance risks from an insurer to the financial markets. This provides for insurance coverage for people and enterprises facing catastrophe risk. To investors, Cat Bonds offer an asset class with low correlation and historically good risk adjusted returns.

Fund Rate Since start One week One year Report
SEF Entropics Cat Bond (Class A) 98.00 -2.00% -0.07% -4.66% Latest report
SEF Entropics Cat Bond Fund Class I (institutional investors) 95.66 -4.34% -0.06% -4.35% Latest report

Read more about our funds.

Risk Information:
Fund investments entail risk. The value of investments in funds can increase as well as decrease and investors can loose all or some of the investment. Historical return is not a guarantee of future returns.

Orkanen Irma vid tiden för landfall 10 september

The flooding from Hurricane Harvey was barely over when the world was alerted about Hurricane Irma. How could it be that the USA, after twelve years’ absence from major hurricanes, felt the impact of two record-breaking hurricanes over the course of one week? Read more

Martin Hedberg
Martin Hedberg
Chief Meteorologist

While investors are attracted to the uncorrelated returns of cat bonds, the purpose of issuers is to obtain insurance coverage against low frequency and high severity catastrophes. Consequently, we will eventually face an event large enough to cause extensive losses in the re/insurance industry and the cat bond market. However, an event, such as a hurricane category 4 or 5 making landfall in Southern Florida, also tends to increase future returns for investors, as the insurance industry need to attract new risk capital. Read more

Robert Lindblom
Robert Lindblom

“In order to cope with the climate change threat, we must not only decrease emissions of greenhouse gases. We must also be able to manage severe consequences of climate change. Hence, we should, to a considerably greater extent, leverage the resources provided by capital markets,” argues Entropics’ chief meteorologist Martin Hedberg and former minister for financial markets Peter Norman in a debate article. Read more

Henrik Sjöholm
Henrik Sjöholm
Director of Communications and Responsible Investment

Purpose matters


At Entropics, the most important metric for responsible investment is the ultimate purpose of the insurance contract covered by a cat bond. It is an overlooked metric when studying responsible insurance operations. Read more

Henrik Sjöholm
Henrik Sjöholm
Director of Communications and Responsible Investment

How can we provide for improved insurance protection in developing economies? Parametric cat bonds and index based insurance offer possibilities. Sometimes critics argue that this entails a lack of correlation between damages and payments. But is this necessarily a disadvantage? Read more

Henrik Sjöholm
Henrik Sjöholm
Director of Communications and Responsible Investment
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