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 a negative return in April, but the year to date returns are just above 2%. Positive contributions came from coupons and negative contributions from suppressed market prices. The fund’s assets are mainly nominated in US dollars and the SEK nominated share classes are affected by currency hedging because of the interest rate… Read more
The fund delivered a negative return in February, but a positive return during the quarter. A decline in market prices was caused by an increased supply, among other things driven by sales by multi-strategy investors in need of liquidity. In situations of market stress, a long-term approach is an asset and long-term managers could use… Read more
The fund delivered positive returns in February. In addition to positive contributions from coupons, contributions came from subrogation (insurers assuming liability rights against the entity causing the loss) regarding the California wildfires of 2017 and 2018. This resulted in lower loss payments from affected bonds. Read more
The fund delivered positive returns in January. In addition to coupons, positive contributions came from the continued recovery of prices for bonds exposed to Japanese wind events in 2019. 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… Read more
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