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UCITS catastrophe bond funds gain in July, but 12-month returns slip
The average UCITS cat bond fund return rose to 1.15% over June 26 to July 31, while the rolling 12-month average fell to 9.94% as reinsurance spreads softened.
UCITS catastrophe bond fund strategies posted a stronger run through July, with performance accelerating over the period from June 26 to July 31, 2026. Artemis says the average return across the Plenum CAT Bond UCITS Fund Indices reached 1.15% for that reporting window, up from a 0.62% average return from May 29 through June 26, 2026.
Artemis reports the market showed no meaningful losses in the latest period, helping returns stay supported by positive premium accrual and related investment income. The outlet also pointed to wind seasonality as a seasonal factor that can lift catastrophe bond performance at this time of year.
Despite the July strength, the rolling 12-month picture weakened. Artemis says the rolling twelve month average return declined to 9.94% as of July 31 from 10.22% as of June 26, marking the first time this year the average fell below 10% on that basis.
Looking at year-to-date results, UCITS cat bond fund strategies climbed to 4.09% as of July 31 from 2.91% as of June 26, according to Artemis. The outlet linked the pullback in rolling returns to reduced spreads in new cat bond issuance as reinsurance pricing softened.