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ILS funds post strongest month of 2026 so far in June
June returns averaged 0.83%, lifting 2026 first-half performance to 4.05% as both catastrophe bond funds and private ILS strategies rose.
Insurance-linked securities investment fund strategies, spanning catastrophe bonds and private ILS, logged their strongest month of 2026 so far in June, according to the ILS Advisers Fund Index. The index averaged a 0.83% return for the month.
The gain marked a third consecutive month in 2026 where all ILS funds that reported performance to the index were positive. With 84% of constituent funds now included, the index lifted first-half 2026 performance to 4.05%, compared with 2.05% for the same period in 2025.
Artemis reports the result is also above the index average since it began in 2006, which is about 2.42%. The outlet said no catastrophe events in June 2026 were thought likely to have caused meaningful impact on the ILS market.
Artemis also noted continued momentum in issuance and renewals, citing significant new catastrophe bond issuance and the June and July reinsurance renewals as feeding ILS funds with fresh investment opportunities. Within the index, pure catastrophe bond funds averaged a 0.81% return in June, while funds with exposure to private positions, largely collateralized reinsurance and retrocession arrangements, averaged 0.86%. The spread was wide, ranging from a 0.25% gain for the lowest-performing fund to a 1.85% gain for the best performer.