Amundi US’ Pioneer cat bond fund grows further. ILS Interval fund AUM stable

Investment manager Amundi US added some more assets to its newer mutual insurance-linked securities (ILS) fund strategy, the Pioneer Cat Bond Fund, in the last quarter of record, while its more reinsurance focused Pioneer ILS Interval Fund’s AUM remained relatively stable in the period to October 31st 2023.

Amundi US launched its dedicated cat bond mutual fund strategy in the first-half of 2023, the Pioneer CAT Bond Fund strategy.

Since then the manager has seen steady growth in assets under management for the Pioneer CAT Bond fund strategy.

The Pioneer CAT Bond Fund had $16.6 million in assets under management (AUM) at January 31st 2023 soon after its launch.

The assets under management of the cat bond fund grew to just over $27.5 million by the end of April, then added a more significant amount of capital in the next period to reach $76 million in cat bond AUM at July 31st 2023.

Now, the Pioneer CAT Bond Fund has reached $84.2 million in assets, as at October 31st 2023, so adding another 11% over the three month period.

The Class A shares of the Pioneer CAT Bond Fund’s Class A delivered an 11.20% net asset value (NAV) return from its launch through October 31st 2023.

The investment managers’ longer-standing Pioneer ILS Interval Fund, which allocates capital to quota share reinsurance arrangements, reinsurance sidecars and private collateralized reinsurance in the main, has now returned to stability, in AUM terms.

Having counted as much as $860 million in total net assets at July 31st 2022, the Amundi Pioneer ILS Interval Fund shrank to just over $698 million by the end of April 2023 and then slightly more to $684.54 million at July 31st last year.

Now, in the latest filings for the fund, total net assets for the Pioneer ILS Interval Fund are reported at $682.3 million as of October 31st, so a much more stable period.

Which now positions the ILS Interval Fund for potential growth, when the next figures are reported to include the end of year and reinsurance renewal period.

At those reinsurance renewals, the Amundi US ILS team will have been busy renewing many of the private quota share and sidecar reinsurance arrangements that they invest into from the interval fund strategy, so this may have provided an opportunity to return this strategy to growth.

Across the 12-month period to October 31st 2023, the Pioneer ILS Interval Fund returned 19.22% at net asset value (NAV).