Amundi US' Pioneer Cat Bond Fund, a mutual insurance-linked securities (ILS) fund, has experienced steady growth in assets under management (AUM). The fund had $16.6 million in AUM at its launch in the first half of 2023 and has now reached $84.2 million as of October 31st, 2023. The Pioneer Cat Bond Fund's Class A shares delivered an 11.20% net asset value (NAV) return from its launch through October 31st, 2023. [b15dbe7e]
Additionally, the Pioneer ILS Interval Fund, which allocates capital to reinsurance arrangements, reinsurance sidecars, and private collateralized reinsurance, has stabilized at $682.3 million in AUM as of October 31st, 2023. The fund returned 19.22% at NAV over the 12-month period to October 31st, 2023. [b15dbe7e]
LGT ILS Partners, the specialist dedicated insurance-linked securities (ILS) investment unit of LGT Capital Partners, anticipates a flow of additional investors for its LGT (Lux) Dynamic Cat Bond Fund in Australia. The fund, classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation, focuses on investments into natural catastrophe bonds diversified across key perils in developed regions. It has delivered a return of close to 6% in the AUD hedged share class to its investors by the end of 2023. LGT expects a pipeline of additional Australian investors to follow in the coming months. [22f61d24]
Bermuda-based RenaissanceRe has decided to wind down the portfolios of the AlphaCat Managers insurance-linked fund strategies. This decision comes after substantial redemption requests from third-party investors and the strategic acquisition of Validus reinsurance operations from AIG, which included the AlphaCat Managers ILS investment unit. RenaissanceRe plans to gradually phase out the AlphaCat portfolios while exploring opportunities to transition some investors into its own reinsurance joint ventures and ILS fund strategies. The AlphaCat Funds had assets and liabilities valued at $5 billion and $2.4 billion, respectively, as of the end of 2023. This decision presents challenges and opportunities for RenaissanceRe, as it aims to restructure its investment strategy and potentially convert disillusioned investors into new partners. The company holds a small equity stake in the AlphaCat Funds and related entities, valued at $4.4 million. The integration of AlphaCat's operations and investor base into RenaissanceRe's portfolio will be a complex endeavor, but it offers the potential for the company to emerge as a more streamlined and strategically aligned entity in the reinsurance market. [99555af9]