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.
During October, no events that triggered positions in the Fund occurred. Hurricane Michael caused some price volatility on the secondary market, but the portfolio positions have recovered, and no position has been triggered by the hurricane. However, a negative contribution to the return came from positions that continue to be affected by hurricane Irma from… Read more
Coupons and increasing market prices contributed positively to the return. Returns in 2018 continue to be affected negatively by the loss development of 2017 events. Read more
In August, the return was 0.22 % for the retail class (A), hedged to the Swedish Krona (SEK). Coupons and slightly increasing market prices contributed positively to the return. Negative contributions came from some adjustments in claims from 2017 events. In addition, as the fund’s assets are mostly nominated in USD, the difference between the… Read more
In July, the return was 0.14% for the retail class (A), hedged to the Swedish Krona (SEK). Coupons and slightly increasing market prices contributed positively to the return. As the fund’s assets are mostly nominated in USD, the difference between the US and the Swedish interest rates has given a negative contribution to share classes hedged… Read more
In June, the return was 0.33% for the retail 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