{"id":272,"date":"2025-04-16T13:45:02","date_gmt":"2025-04-16T13:45:02","guid":{"rendered":"https:\/\/hongkongmerchant.com\/?p=272"},"modified":"2025-06-18T14:53:33","modified_gmt":"2025-06-18T14:53:33","slug":"rochdale-ilw-cat-bond-fund-returns-11-77-with-only-modest-catastrophe-impacts","status":"publish","type":"post","link":"https:\/\/hongkongmerchant.com\/index.php\/2025\/04\/16\/rochdale-ilw-cat-bond-fund-returns-11-77-with-only-modest-catastrophe-impacts\/","title":{"rendered":"Rochdale ILW & cat bond fund returns 11.77% with only modest catastrophe impacts"},"content":{"rendered":"

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The City National Rochdale Select Strategies Fund, a mutual insurance-linked securities (ILS) strategy focused on industry loss warranties (ILWs) and catastrophe bonds, delivered a net return of 11.77% for the year ended January 31, 2025.
\n<\/span>
\n\"city-national-rochdale-ilw-fund-logo\"While down from the 15.58% return recorded the previous year, 2024\u2019s performance still marked a second consecutive year of strong, above-average gains for the interval-style fund.<\/p>\n

Run by City National Rochdale, the fund combines structural customisation with tactical risk management across ILWs and cat bonds. As of the end of January 2025, total net assets reached $228.2 million, up from mid-2024 levels,<\/a> reflecting continued investor interest in ILS as a source of uncorrelated returns amid broader market volatility.<\/p>\n

\u201cThis year\u2019s performance was the second year in a row with higher-than-average positive returns and the Fund\u2019s sixth consecutive year generating positive, fundamentally non-correlated returns,\u201d said Gregg Giaquinto, President of City National Rochdale.<\/p>\n

According to Giaquinto, the fund\u2019s defensive positioning ahead of a hyperactive 2024 hurricane season played a key role. Portfolio construction focused on more risk-remote attachment points and custom structures designed to reduce the risk of impairment from a single event. Exposure to risk was further hedged through the purchase of additional ILW protection.<\/p>\n

\u201cThese improvements can be evidenced by the increase in loss-exposure breakeven points compared to past years,\u201d Giaquinto explained. \u201cThe dynamic risk positioning exemplifies the ability to moderate through prudent underwriting and highlights the customizability of the ILW product.\u201d<\/p>\n

While catastrophe bond allocations were more modest in the portfolio, the fund still benefited from a record second year of primary market issuance in the cat bond space. However, the lighter weighting meant the fund slightly underperformed the Swiss Re Cat Bond Index, which returned +14.41% over the same period.<\/p>\n

Even so, the Select Strategies Fund outpaced traditional cash proxies like the ICE BofAML 3-month U.S. Treasury Bill Index, which returned +5.19% for the year ended January 31st 2025.<\/p>\n

It\u2019s worth noting that this performance comes amid a strong overall year for the ILS market, which has seen continued investor demand, particularly for cat bonds and ILWs offering attractive risk-adjusted yields and structural clarity.<\/p>\n

\u201cThe Fund\u2019s portfolio construction process for 2025 is now well underway, and we are focused on diversification and capital-efficient opportunities in the ILW and Cat Bond markets, where we believe risk-adjusted returns are most attractive,\u201d Giaquinto added.<\/p>\n

\u201cWe are excited for the opportunity to further capitalize and source attractive opportunities for our shareholders in the coming months.\u201d<\/p>\n

Rochdale ILW & cat bond fund returns 11.77% with only modest catastrophe impacts<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. The City National Rochdale Select Strategies Fund, a mutual insurance-linked securities (ILS) strategy focused on industry loss warranties…<\/p>\n

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