Specialist insurance-linked securities investment manager Twelve Securis has put in place a temporary restriction on new subscriptions to its flagship Twelve Cat Bond Fund, as the manager looks to manage flows as the strategy reaches a new record size.Twelve Securis said in an update to investors seen by Artemis that the Twelve Cat Bond Fund has now reached more than US $3.8 billion in assets under management.The manager’s flagship UCITS catastrophe bond fund strategy had reported US $3.66 billion of AUM at the end of March 2025, but has clearly continued to grow in now surpassing $3.8 billion in April this year.As cat bond funds grow in size they can become increasingly complex to manage, in terms of the flow of new capital and the market issuance cycle.

There’s a need to carefully match availability of capital with the forward pipeline of new issuance, as well as with expected maturities, to ensure inflows can be deployed in a disciplined manner.Here it seems Twelve Securis is looking to do exactly that, effectively matching the fund’s risk appetite to the market activity and also perhaps to the pricing environment.We understand that Twelve Securis has put in place a soft close of sorts, or a gate, on subscriptions to the Twelve Cat Bond Fund.

Effectively this means continuing to support existing investors with their needs, in terms of allocations and subscriptions of up to low single digit million USD amounts.But there is also a gate on total fund new subscriptions, of a maximum that Twelve Securis will accept into the cat bond fund on a single date, we understand.Twelve Securis said the temporary subscription is “in accordance with our fiduciary duty to act in the best interests of all investors and to safeguard future return prospects.” The ILS investment manager also said, “This action is designed to prudently manage inflows and maintain the integrity of the investment strategy.” The subscription restrictions are designed to be temporary and Twelve Securis is expected to monitor market conditions and its fund capacity on an ongoing basis, to see if it remains warranted, we understand.

Managing sizeable portfolios requires these kinds of decisions to be taken, as in a market where overall size remains limited the UCITS cat bond fund space is now a sizeable component of the outstanding cat bond universe.As we reported recently, , with the three largest funds (one of them being the Twelve Securis strategy) making up some 66% of the total segment AUM.At that time, UCITS cat bond funds made up around 29% of outstanding cat bond market capital as of the end the first-quarter of 2025.

Carefully managing fund size is vital to ensure investor returns are managed and protected.While it’s also critical to manage size during periods where the pricing of new issues may be softening, again to protect the return profile of a strategy.Finally, it’s also worth noting that , which provide cash that often needs to be reinvested.

Hence for a larger fund it could sometimes be preferable to slow down inflows so that these high-maturity periods can be better managed..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.