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

Read more about cat
bonds for investors

 
5

reasons

Team specialized in insurance risks

Responsible investment

Nordic home turf

Independence

Transparency

 

Hur påverkas en portfölj av att ta in cat bonds?

En traditionell värdepappersportfölj som kompletteras med cat bonds förväntas leverera en jämnare avkastning över tid. De senaste tio åren skulle en traditionell portfölj bestående av svenska, utländska aktier och obligationer ha gett en högre avkastning och lägre volatilitet om den också bestått av cat bonds.
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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) 102.83 +2.83% +0.02% +3.67% Latest report

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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.

A reference portfolio would, in 2007-2016, have had higher return and lower volatility if it had been completed with cat bonds

A traditional investment portfolio complemented with cat bonds would be expected to deliver more stable returns. Looking at the past ten years, a traditional portfolio, allocated to Swedish and foreign equity and bonds, would have delivered higher returns and a lower volatility with a cat bond allocation. Read more

Agne Burauskaite-Harju
Agne Burauskaite-Harju
Underwriter

One of the largest advantages of cat bonds is that they are fundamentally uncorrelated to other asset classes. A financial crisis does not trigger earthquakes. A deeper analysis also shows that large natural events do not affect broader markets, though they naturally have a large local impact. Read more

Meryem Savas
Meryem Savas
Underwriter

The 2016 hurricane season was the most active since 2012, with one of the costliest and deadliest hurricanes in several years. However, no cat bonds triggered following a hurricane during the season. Read more

Martin Hedberg
Martin Hedberg
Chief Meteorologist

Improved standardisation regarding risk reporting can consolidate cat bonds as an asset class. Even waiting for a comprehensive standard, the industry could take several steps to increase the transparency of risk assessment. Read more

Robert Lindblom
Robert Lindblom
CEO

Several factors - the diversification challenge in a low interest environment, expected new emissions and increasing supply of new perils on the market - indicate that cat bonds presently are an interesting option. Read more

Robert Lindblom
Robert Lindblom
CEO
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