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Lower Irma estimate helped City National Rochdale ILS fund recover

A lower than expected industry loss from hurricane Irma helped the industry loss warranty (ILW) focused mutual insurance-linked securities (ILS) fund, the City National Rochdale Select Strategies Fund (CNRLX), recover much of its wind ILW losses, as positions moved from being considered a loss to untouched.

The 2017 hurricane season caused the City National Rochdale Select Strategies Fund, which is run by Royal Bank of Canada subsidiary City National Rochdale, LLC, to mark down the value of its investments by 22% due to the major hurricanes that hit the United States.

Now, in its latest report, the fund manager reveals that after a fresh estimate was released by PCS in December, with a lower than had been forecast insurance and reinsurance industry loss estimate for hurricane Irma, what had been a roughly 20% mark-down across its wind ILW book actually resulted in a considerably better 2017 full-year return of -3.90%.


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