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

 

Cat bonds – correlation to traditional asset classes

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.
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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) 102.50 +2.50% +0.05% +6.21% 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.

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
Actuary

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
Cat bonds har låg ränterisk

For fixed income instruments, such as cat bonds, the sensitivity to interest rate variation is very important to investors. Any investment in fixed-income instruments, such as traditional government or corporate bonds, or cat bonds, carries an interest rate risk. Cat bonds are, however, structured in a manner that minimises this risk. Read more

Robert Lindblom
Robert Lindblom
CEO
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