A definitive prospectus has now been filed with the SEC for the Brookmont Catastrophic Bond ETF, a new exchange traded fund strategy that will be predominantly focused on the catastrophe bond and insurance-linked securities (ILS) asset class.In this final informational filing for this catastrophe bond ETF, the ticker symbol it will be listed under on the New York Stock Exchange (NYSE) has been amended, with it now set to have a ticker of ILS, which seems more appropriate than the previous ROAR that had been in earlier filings.With this first cat bond ETF set to have shares that can be traded directly on the NYSE, under its ticker symbol of ILS, it will be the first catastrophe bond focused strategy to be exchange-listed and traded, meaning liquidity opportunities for investors are set to be far more frequent than we see with most cat bond investment funds.With a stock exchange listing, the ILS cat bond ETF will also be more accessible to the growing range of investors we see exploring the ILS asset class as well.

Other mutual ILS fund strategies tend only to be available via registered investment advisors., the Brookmont Catastrophic Bond ETF, which is being launched by Brookmont Capital Management, LLC, will look to invest at least 80% of its assets in catastrophe bonds, but it can also allocate to certain other reinsurance related assets as well, such as collateralized reinsurance, quota shares, industry loss warranties, and other insurance or reinsurance-related bonds., King Ridge Capital Advisors LLC will be the sub-adviser to the cat bond ETF, effectively managing the cat bond and ILS portfolio for the ETF.

King Ridge Capital Advisors LLC is a recently launched ILS investment management firm founded by sector specialists Rick Pagnani and Vijay Manghnani.The filing of a definitive prospectus for this cat bond ETF ($ILS) is the latest milestone for the new strategy, with the prospectus now set to become effective within days and a launch of the Brookmont Catastrophic Bond ETF possible as soon as February, we understand.It’s going to be interesting to observe the reception this new exchange traded fund receives, given it is the first ETF with a catastrophe bond focus.

There has been some anticipation building among investors that are looking for an efficient way to access the returns of the cat bond asset class, through a fund strategy that is perhaps more accessible for many in the investment community, as well as via broker-dealers for retail investors and that is actively managed.Valuation will be critical for the fund, as will marking the investments to market to ensure it actively reflects the latest prices of cat bonds and ILS investments within its portfolio.Being an ETF, this Brookmont Catastrophic Bond ETF also raises the topic of liquidity providers and market makers, given they often play important roles in the success of other exchange traded fund strategies.

The catastrophe bond market has often been cited as lacking liquidity and market makers have not been a significant player in the space to-date.When this first catastrophe bond ETF launches, it will be interesting to track volumes, fund assets under management and other metrics, to see how it is received and whether the strategy proves successful..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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