Significant price weakness in the secondary cat bond market saw the ILS Diversified cat bond portfolio deliver negative returns in May, pulling overall fund performance into negative territory.
US dollar shares in the open ended fund lost 0.13 percent in May, but were up 1.27 percent year to date. Swiss franc shares fared worse, losing 0.48 percent for the month.
In all, nine of the fund's positions were positive, according to ILS Advisers, the investment manager, a business unit of HSZ Group. The fund has nearly three quarters of its portfolio in private ILS, with just under 20 percent in cat bonds. The remainder of its assets – 5.9 percent of assets under management – are held in cash.
The fund's side-pockets were impacted by the loss creep from Typhoon Jebi, ILS Advisers added.
ILS Diversified, ILS Advisers, HSZ Group