4 February 2014ILS

Eurekahedge: mixed funds outperform pure cat bond strategies

Eurekahedge’s latest index report has found that mixed ILS funds are outperforming those with a pure cat bond focus, thanks to higher yields on private ILS transactions.

ILS Advisers’ report found that pure cat bond funds listed on its index were up 0.31 percent in January; while those funds that included private ILS transactions within their funds strategy saw their position improve by 0.4 percent during the same period.

The 32 funds monitored by ILS Advisers’ Eurekahedge index rose by 7.56 percent points in 2013, resulting in the index’s best year since 2010.

The index did experience some slow-down during the year however, thanks to the seasonal slow-down in May, catastrophe losses in June and falling appetite in December. Despite this however, 2013 was the fourth best year in the Eurekahedge’s eight year history.

Eurekahedge says that results were buoyed by strong inflows into the asset class and a benign catastrophe year.