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’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. 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’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
In January, the fund return amounted to 0.88% for the retail class (Class A). The return is partly explained by loss reports indicating lower losses then previous estimates, which has caused affected positions to rebound. Read more
During December, claims reports concerning the extreme hurricane season have made exposed bonds recover partly. The wildfires in California continued to develop and to pressure the mark to market value of some positions. The Fund returned 0.01% in December. Read more
During November, the fund’s return has been negatively affected by the large wildfires in California, while other positions have recovered the drawdown following this season’s extreme hurricanes. The month’s return is down 0.47%. Read more
In October, the positions exposed to the severe hurricanes Irma and Maria have recovered significantly for the ones exposed to Irma and to a certain extent for the ones exposed to Maria. The month’s performance is mainly a sum of the risk premiums and the market evaluation of the bonds exposed to Irma and Maria. Read more