Twelve Capital’s cat bond UCITS fund reaches $1bn in assets

Twelve Capital’s cat bond UCITS fund now has more than $1 billion in assets under management.

Twelve Capital now manages close to $2 billion in capital overall in its cat bond strategy. Twelve expects more growth to come, given the advantages of investing in non correlated assets such as cat bonds during periods of heightened market volatility.

“Cat Bonds have again proven the benefit of investing into an asset class that exhibits only minimal correlation to equity or credit markets,” said Florian Steiger, portfolio manager for Twelve Capital’s cat bond strategy. “As spreads are still attractive, we expect further growth of the cat bond strategy in the coming months.”

Urs Ramseier, chief executive officer and co-founder of Twelve Capital, said: “The performance achieved across products in different market phases highlights the benefit of investing across an insurer’s balance sheet, as it enables the identification of industry trends early on.”

Ramseier described the cat bond UCITS offering as “a cornerstone of our product range.” Twelve is investing to further improve its investment process and understanding of key issues such as climate change and ESG (environmental, social and governance), he added.