{"id":245,"date":"2025-04-16T13:45:02","date_gmt":"2025-04-16T13:45:02","guid":{"rendered":"http:\/\/www.atsnorfolk.com\/?p=245"},"modified":"2025-04-16T14:02:33","modified_gmt":"2025-04-16T14:02:33","slug":"rochdale-ilw-cat-bond-fund-returns-11-77-with-only-modest-catastrophe-impacts","status":"publish","type":"post","link":"http:\/\/www.atsnorfolk.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":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

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

“This 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,” 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’s 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

“The 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,” Giaquinto added.<\/p>\n

“We are excited for the opportunity to further capitalize and source attractive opportunities for our shareholders in the coming months.”<\/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 […]<\/p>\n","protected":false},"author":1,"featured_media":247,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-loss-warranty"],"_links":{"self":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/comments?post=245"}],"version-history":[{"count":2,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/245\/revisions"}],"predecessor-version":[{"id":248,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/245\/revisions\/248"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media\/247"}],"wp:attachment":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media?parent=245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/categories?post=245"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/tags?post=245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}