The average return of UCITS catastrophe bond fund strategies was 1.38% for the first-quarter of 2025, according to the Plenum CAT Bond UCITS Fund Indices. But lower-risk cat bond funds led the way by averaging 1.50% for the period as a group, as they generally had less exposure to the California wildfire cat bond mark-downs.
March saw UCITS catastrophe bond fund returns reaching their highest monthly level so far this year, as the mark-to-market effects of the Los Angeles wildfires had lessened throughout last month.
2025 began with UCITS cat bond funds averaging a roughly 0.40% return for the month of January as the initial effects of the wildfire affected certain cat bond’s pricing, after which performance dropped to an average 0.32% return for the month of February, as certain positions wildfire related mark-downs accelerated during that month.
For March 2025, the average return across the UCITS cat bond funds tracked by Plenum Investments Index was 0.56%, taking the average return for the first-quarter of the year to 1.38%.
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