Pure cat bond funds delivered a return of 3.02% in H1, outperforming private strategies, which delivered 1.01%, according to the ILS Advisers Fund Index.
This was due to private strategies taking a larger hit from January’s LA wildfires versus the cat bond market, the consultancy said.
For the month of June, the index posted a profit of 1.11%, bringing the year-to-date gain to 2.05%.
This compared to a return on 0.76% for the index in June 2024.
ILS Advisers also revised up its figure for May returns, to 0.86%, from 0.79%.
Pure cat bonds generated profits of 0.86% in June, while funds incorporating private ILS gained 1.37%.
All 35 funds that reported performance for June were positive, with returns ranging from 0.59% to 3.98%.
Cat bond prices declined by 0.12% in June, resulting in a total return of 0.89% for the Swiss Re Global Cat Bond Index.
Year-to-date cat bond prices are down 3.12%, with the Swiss Re index delivering returns of 2.72%, ILS Advisers said.
The Swiss Re index has faced headwinds from the LA wildfires, with price corrections in multi-peril aggregate cat bonds, and above average losses from severe US weather events, the firm added.
On the catastrophe event front, Hurricane Erick made landfall on Mexico’s Pacific coast on 19 June as a Category 3 event, nearly triggering a payout from the Mexican government’s parametric World Bank IBRD (CAR 135) D note, which provides Pacific named storm coverage.