New York-based hedge fund, AIFAM, is seeking to raise assets in a catastrophe bond fund by five times to $150 million over the next year with Japanese pension money, Bloomberg reports. The firm is targeting Japanese pensions looking to diversify investments away from traditional asset classes, such as bonds and equities, by offering a fund that invests in catastrophe bonds.
The fund invests in about 30-40 catastrophe bonds issued by insurers to cover claims if natural disasters, such as North American hurricanes or earthquakes in Mexico and Japan occur. The $34 million fund has returned about 10 percent this year through October.
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