UCITS cat bond funds experienced outflows in the third quarter of the year, with their combined assets under management falling by 4% to just over $9.95 billion.

This decline is attributed to a number of factors, including the relatively benign hurricane season in the Atlantic, the strong performance of other asset classes, and some concerns about the potential for losses from secondary perils such as floods and wildfires.

Despite the outflows, the UCITS cat bond market remains resilient, and there is still strong demand from investors looking for exposure to this asset class.

The Twelve Capital UCITS cat bond fund strategy has been one of the strongest performers in the market this year, adding almost $530 million in assets throughout 2023. This growth has made Twelve Capital the largest UCITS cat bond fund manager, with over $2.4 billion in assets under management.

Twelve Capital’s success is partly due to its focus on providing investors access to a diversified portfolio of cat bonds. The Twelve Capital fund invests across various perils, including hurricanes, earthquakes, and tornadoes. This diversification helps to reduce the risk of losses from any single event.

Twelve Capital also benefits from its strong track record. The fund has generated a positive return in the past five years. This consistent performance has helped to attract new investors to the fund.

The decline in UCITS cat bond fund assets in Q3 is a reminder that this asset class is not immune to volatility. However, the Twelve Capital fund’s strong performance suggests that investors still demand strong exposure to cat bonds.

UCITS cat bond funds experienced some outflows in the third quarter of the year, but the Twelve Capital UCITS cat bond fund strategy has been one of the strongest performers in the market this year. Twelve Capital’s success is partly due to its focus on providing investors with access to a diversified portfolio of cat bonds and its strong track record.

UCITS cat bond funds are a type of investment that helps people protect themselves from financial losses caused by natural disasters. The market for UCITS cat bond funds shrank by 4% in the third quarter of the year, but the Twelve Capital UCITS cat bond fund strategy grew by almost $530 million. This makes Twelve Capital the largest UCITS cat bond fund manager. Twelve Capital’s success is partly due to its focus on diversifying its investments and strong track record.