SEF Entropics Cat Bond Fund Class I (institutional investors)
SEF Entropics Cat Bond Fund (”The Fund”) is the first fund managed by a Scandinavian asset manager specialised in investments in insurance-linked securities (ILS). Entropics has a responsible investment style.
The Fund aims at delivering good risk adjusted returns with low correlation to other asset classes, such as equity and bonds. The Fund manages a cat bond portfolio globally diversified with respect to perils and geography.
The Fund’s target return is 4-6% per annum over the risk free interest rate. The target is chosen with respect to the ambition to protect investors’ assets and to generate returns.
The Fund complies with the EU UCITS regulation. This framework aims at protecting investors through high standards for risk management, concentration risks and liquidity in compliant funds. The (I) Class is available only to institutional investors.
The Fund invests according to Entropics’ policy for responsible investments.
The Fund is set up through Swedbank Management Company S.A. in Luxembourg. Swedbank AB is the Fund’s administrator, guaranteeing valuation and administration independent of Entropics. Entropics is the asset manager of the Fund, focusing on investment decisions.
In June, the return was 0.35% for the institutional class (A), hedged to the Swedish Krona (SEK). Coupons and slightly increasing mark-to-market prices contributed positively. As the fund’s assets are primarily nominated in US Dollars, the interest rate difference between Sweden and the US has contributed negatively for share classes hedged to SEK with 195… Read more
Return was -0.04% in May. Coupons gave a positive contribution. New loss estimates following the 2017 hurricane and wildfire seasons affect some positions, in total giving a negative contribution. Also the interest rate difference between Sweden and US contributes negatively. Read more
During April, the return amounted to 0.30% for the institutional class, hedged to the Swedish Krona. The positive return can mostly be attributed to coupon earnings. Read more
The institutional class hedged to Swedish Krona returned –0.47%. The negative return has been caused by new loss estimates that have been issued for the extreme wildfires in California in 2017. The new estimates have exceeded market expectations. In addition the winter storm Riley, that hit the US Mid Atlantic Coast in early March, has… Read more
The Fund’s retail class returned -1.32% in February. The negative return has been caused by new loss estimates that have been issued for the extreme wildfires in California in 2017. The estimates have exceeded market expectations. Read more