The Ambassador US mutual disaster bond fund technique operated by advisor Embassy Asset Administration has now expanded its insurance-linked securities (ILS) fund’s property underneath administration to $428 million, with growth throughout the portfolio and extra industry-loss guarantee (ILW) investments made as properly.
The Ambassador cat bond fund was launched in the third-quarter of 2021 by investment advisor Embassy, which has a focus on non-correlated strategies that deliver income to its clients.
With a devoted disaster bond and insurance-linked securities (ILS) funding focus, Embassy was the most recent entrant to the US mutual ILS fund market on the time.
The technique started allocating capital to catastrophe bonds in the quarter to April 30th of 2023, while also entering into its first private ILW arrangement under the Consulate Re structure.
After that, the Ambassador Fund benefited from rising investor curiosity and took extra inflows into its disaster bond centered technique by means of 2023 and 2024.
We final reported on this largely cat bond centered fund when it surpassed $329 million in assets under management (AUM) in October 2024.
Now, as of its final formal reporting of knowledge for January thirty first 2025, the Ambassador Fund’s whole property underneath administration had reached nearly $418 million.
Which is a greater than doubling in measurement in a single yr, because the Ambassador cat bond fund had solely $164 million in whole web property at January thirty first 2024., representing spectacular 155% progress in simply twelve months.
We perceive although, that the fund has continued to develop in latest weeks as properly, reaching $428 million in web property as of the tip of February 2025.
The one-year rolling return seems to be operating at round 11.67% as of the tip of February, nevertheless like many cat bond funds the year-to-date seems extra muted as a result of some value results possible brought on by the California wildfire impacts to sure positions, which has diminished the 12-month return.
Within the final full-year of efficiency, to October thirty first 2024, the Ambassador cat bond fund achieved a 13.5% return.
As of January thirty first 2025, the Ambassador Fund counted $330.3 million of disaster bonds inside its portfolio, whereas the popular observe investments into industry-loss guarantee (ILW) contracts underneath Consulate Re amounted to only over $59 million, with the remainder of the online property comprised of short-term investments.
The Consulate Re personal investments into ILW’s are a approach for the Ambassador portfolio administration workforce to supply further investments, then rework them to a construction suited to a mutual ILS fund technique.
As we perceive it, they’re all remodeled and securitized industry-loss warranties (ILW) preparations and now, as of the January thirty first reporting, the Ambassador Fund portfolio has 10 Consulate Re positions, 7 of that are 2025 collection and so extra just lately invested in, it seems.
