Money flows into Twelve Capital’s UCITS cat bond strategy

Twelve Capital has raised nearly $400 million in 18 months for its latest UCITS cat bond offering, the company has said.

The funds have been raised through Twelve’s distribution activities across Switzerland, Germany, Netherlands and the UK, despite a challenging market environment.

Twelve Capital also said it is looking to broaden its activities into other markets such as France and the Nordics, with distribution outside Europe also a possibility.

Florian Steiger, responsible for Twelve Capital’s cat bond strategy, suggested the recent repricing in cat bond spreads represents an attractive entry point for new investors, and an opportunity for existing investors to increase their allocations to the asset class.

“These inflows have allowed for the purchase of Cat Bonds in primary and secondary markets during recent phases of volatility, which has been of benefit to the strategy’s overall risk-return profile,” added Steiger.