Catastrophe bond fund strategies in the UCITS format averaged positive returns for the month of January 2025, despite the effects of wildfire related mark-downs to exposed positions, according to the latest data from the Plenum CAT Bond UCITS Fund Indices.As we had reported before, the Los Angeles, California wildfires had on the UCITS cat bond fund cohort earlier in January., after the January 17th marks.

But, as we reported last week, .Resulting in .However, with the number of bonds affected still only a relatively small proportion of the outstanding catastrophe bond market, the majority of cat bond funds have been positive for the month of January 2025.

Which read across to the UCITS cat bond fund strategies, which we can now report averaged 0.49% for the month of January, since the last calculation point of the in the prior year.The reason being, that catastrophe bond funds are continuing to benefit from significant coupon returns that have outpaced the market-wide impact of the recent devastating California wildfire.The effect of the wildfire related cat bond price mark-downs are more evident if you look at the Plenum Index over a shorter period.

If you extrapolate out the Index returns over the calculation points between the latest in December 2024 and first in January 2025, it gives an approximate full-month return for January 2025 of 0.25%.Since the first Index calculation point of this year, at January 3rd 2025, the UCITS cat bond Index return to January 31st was a still positive 0.08%.For the trailing year, to January 31st 2025, the average UCITS cat bond fund return, according to the Index, is still running at a very healthy 12.48%.

The Low-Risk average return, for UCITS catastrophe bond funds with a lower expected loss, was 12.10% across the trailing year, while the High-Risk UCITS cat bond fund index averaged 12.80%..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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