Swisscanto debuts UCITS cat bond fund with $25M as ILS goes mainstream
What's the deal? SwisscantoDealroom has a profile for this one. Try Dealroom → Asset Management International S.A. has launched its first UCITS catastrophe bond fund under Luxembourg law, debuting with just over $25 million in assets under management. The fund, Swisscanto (LU) Bond Fund Cat Bonds, will invest exclusively in standardised, tradable cat bonds to give qualified investors liquid access to insurance risk premiums.
What's the endgame? The strategy sits within the risk and governance framework of Zürcher KantonalbankDealroom has a profile for this one. Try Dealroom →, Switzerland's second-largest asset manager and the investment manager for Swisscanto funds. It features a risk model built specifically for catastrophe bonds and aims to build a diversified portfolio with an attractive risk-return profile.
The fund is run by a dedicated team led by senior portfolio manager Karl Ruzsics, who joined Zürcher Kantonalbank's fixed income department in 2022, and deputy portfolio manager Jamil Bouallai.
Why cat bonds? Cat bonds let insurers hedge risks such as hurricanes, floods, and earthquakes, with returns tied to those specific events rather than broader markets. That gives them low correlation to equities and corporate bonds.
"They can therefore help to bring greater stability to an investment portfolio during periods of market volatility," Swisscanto said.
"We are bringing modern fixed-income expertise to a specialised niche," said Maurizio Pedrini, designated head of fixed income. "We combine an established risk model with an active relative-value approach to create a diversified portfolio with attractive return potential."
The signal: The launch marks the 21st active UCITS cat bond strategy in a market that held roughly $20.5 billion in group AUM as of April 30, 2026. With a growing field of regulated wrapper products emerging across Europe, the asset class is shifting from a niche institutional format toward mainstream investor access — making Swisscanto's modest $25 million debut more a signal of product-market testing than a major capital raise.
Read more: Artemis
