SEF Entropics Cat Bond (Class A)
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. As the Fund complies with the UCITS framework, it can be marketed to in EU countries subject to a notification procedure. Initially, the Fund is only available to institutional investors in all EU countries and on the consumer markets in Sweden and Luxembourg. The Fund can be introduced on additional markets if demand is sufficiently high.
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 fund delivered positive returns in December following a strong H2 performance. Contributions came mainly from coupons and some recovery from positions exposed to Japanese wind. The fund’s assets are mostly issued in US dollars and the outstanding SEK share classes have negative contributions from currency hedging due to the difference between the US and… Read more
The Fund returned the highest return ever for the month of October since inception. In addition to coupons, positive contributions came from bonds exposed to the ongoing North Atlantic Hurricane Season. Claims settlement processes of previous events also contributed positively. Negative contributions came from mark-to-market prices for bonds exposed to Japanese typhoons, attributable to Typhoon… Read more
The return in September saw contributions from risk premiums as part of the ongoing Atlantic hurricane season, though they also include some positive contributions from a security that is subject to the events that occurred in 2017/18 and claims settlement has progressed with estimated gains compared to previous market estimates. Read more
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