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 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.
The return in August sees contributions from risk premiums as part of the ongoing Atlantic hurricane season, though they also include some negative contributions from the uncertainty associated with Hurricane Dorian. However, it will not lead to claims on cat bonds and prices will recover quickly. Read more
In July the returns from Entropics Cat Bond Fund in the SEK hedged share classes were almost flat and measured in USD the returns were positive. Coupons contribution to returns was 0.67%. Claims settlements from the historically costly years of 2017/18 contributed slightly negatively and the markets’ concern for further development of the loss from… Read more
The North Atlantic Hurricane Season officially started on June 1st and will continue until November 30th. In the secondary market seasonal price increases started gradually in June and are expected to accelerate as the North American hurricane season moves ahead. The hurricane season officially ends on 30th November. The uncertainty regarding losses following the events… Read more
In May, coupons have contributed positively to the return with 0.80% and mark-to-market pricing has contributed -0.97%, of which -0.35 percent units are related to bonds exposed to old losses from the historically costly years 2017/18 with updated loss estimates. The remaining -0.63 percent units are related to the increasing market demand for returns going… Read more
Claims settlement losses continued to pressure the market during the month. This has led to the average multiple, i.e. the quota between the coupon and expected loss, increasing notably from 2.01 last year to 3.20. The risk premiums are now the highest since 2012/13. Read more