Cat bonds rise through March, put pure-play funds up another 1%
Pure-play cat bond investment funds have risen for every week for a year and a third, holding the recent pace in March for a roughly 1% gain on the month, a weekly index of bond fund pricing compiled by Plenum Investments shows.
Pricing through the March 29 reading made it 69 weeks of uninterrupted gains for the fund group, a period that brought 19% gain for the dollar-denominated fund group.
The 22.8% cumulative post-Ian gain for the USD-denominated measure puts it 14.7% above pre-Ian levels as cat bonds distance all other ILS vehicles for investor favour.
Euro- and Swiss franc-denominated indexes have continued to lag the gains of the dollar measure in March as throughout the rally, adding to an accumulating underperformance. That now accounts for four percentage points of underperformance since the post-Ian lows for the Euro-denominated measure, six points for the franc measure.
The array of total return performance indexes, published weekly by Plenum Investments, are built on broker quotes for a group of 15 pure-play cat bond UCITS investment funds. Sub-indexes divvy up results by currency unit class and a classification of risk profile subject to semi-annual review.
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