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Insurance-Linked Securities are financial instruments whose performance is determined by insurance loss events primarily driven by weather-related and other natural catastrophes - such as hurricanes and earthquakes. These events are typically low-frequency but high-severity occurrences.

 

Insurance-Linked Securities May Offer Investors

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Low Correlations¹. Insurance-Linked Securities (ILS) provide a unique opportunity to invest in an alternative asset class that is uncorrelated with financial markets. This may result in strong diversification² benefits and an attractive risk-return profile.
A Hedge Against Interest Rate Risk. The primarily floating rate structure of ILS links a component of their performance to a benchmark rate (such as LIBOR),³ leaving investors with limited interest rate risk.

Why Invest in ILS with Amundi Pioneer?

 

  • Experience and Commitment: Amundi Pioneer has been investing in ILS since early 2007. We manage ILS as a component of many of our diversified portfolios and on a dedicated basis. As of June 30, 2017, Amundi Pioneer has over $1.44 billion in exposure to ILS. 

  • Extensive Risk Analysis: The Fund's process is built upon a significant analytical foundation, using industry analytics to evaluate the risk of individual investment opportunities.

  • Comprehensive Research Coverage: Amundi Pioneer supplements its robust proprietary research capabilities with third party analysis, to incorporate broad industry trends as well as in-depth company-specific analysis into the investment decision. Our comprehensive coverage permits analysis of reinsurers from multiple views: equity, corporate bond and ILS risk.

  • Global Presence and Access: As an asset manager with over $138 trillion in assets4, Amundi Pioneer has cultivated partnerships with many reinsurers, providing us strong market access to the ILS sector.

 

 

Latest ILS News Article


October 19, 2017

Portfolio Event Update: California Wildfires, Part 2

Almost 10,000 firefighters continue to make progress on large wildfires burning in the state of California. Fortunately, cooler weather and increased humidity have helped firefighters in their efforts to control and contain the fires, and weather conditions will continue to help as light rain is forecast in Northern California.

 
 
 

Latest Monthly Perspective


September Monthly Perspective

Pioneer ILS Interval Fund Monthly Perspective is designed to assist you in better conveying the potential benefits of this Fund.

 
 
 

 


 

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Fund Overview

Read more about the Fund in our 
fund overview.

 

 

How do I get started?

Subscribe to the Pioneer ILS Interval Fund. Fill out this online form to get started:

 

 

1Correlation - The degree to which assets or asset class prices have moved in relation to one another. Correlation ranges from -1 (always moving in opposite directions) through 0 (absolutely independent) to 1 (always moving together).

2Diversification does not assure a profit or protect against loss.

3London Interbank Offer Rate (LIBOR) is used as a reference for short-term interest rates.

4Source Amundi Asset Management based on pro forma combined figures for Pioneer Investments and Amundi Asset Management as of end December 2016. 

Please consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund and should be read carefully before you invest or send money. To obtain a prospectus or summary prospectus and for other information on any Pioneer fund, call 1-844-391-3034 or visit our web site at amundipioneer.com.

Neither Amundi Pioneer, nor its representatives are legal or tax advisors. In addition, Amundi Pioneer does not provide advice or recommendations. The investments you choose should correspond to your financial needs, goals and risk tolerance. For assistance in determining your financial situation, please consult an investment professional.

A Word about Risk:

Certain fees and expenses are associated with an investment in Pioneer ILS Interval Fund.

Please see a prospectus for a complete discussion of the Fund’s risks. The Fund is a non-diversified, closed-end management investment company designed primarily as a long-term investment. The Fund is not a complete investment program. The Fund invests primarily in insurance-linked securities (“ILS”), which are high yield debt securities that involve a high degree of risk. The Fund is operated as an interval fund, meaning the Fund will seek to conduct quarterly repurchase offers for a percentage of the Fund’s outstanding shares. Although the Fund will make quarterly repurchase offers, the Fund’s shares should be considered illiquid.

Insurance-linked securities may include event-linked bonds (also known as insurance-linked bonds or catastrophe bonds). The return of principal and the payment of interest on event-linked bonds are contingent on the non-occurrence of a predefined “trigger” event that leads to physical or economic loss, such as a hurricane or an aerospace catastrophe. Event-linked bonds may expose the Fund to other risks, including, but not limited to, issuer (credit) default, adverse regulatory or jurisdictional interpretations and adverse tax consequences. The Fund may also invest in structured reinsurance investments or similar instruments structured to comprise a portion of a reinsurer’s catastrophe-oriented business (known as “quota share” instruments or “reinsurance sidecars”). Investors participate in the premiums and losses associated with these underlying contracts, into which the Fund has limited transparency. The size of the ILS market may change over time, which may limit the availability of ILS for investment. The availability of ILS in the secondary market may also be limited. Certain securities, including ILS, structured reinsurance investments and derivatives, may be impossible or difficult to purchase, sell, or unwind. Such securities and derivatives also may be difficult to value. The values of Fund holdings may go up or down, due to market conditions, inflation, changes in interest or currency rates and lack of liquidity in the bond market. Investments in high yield or lower-rated securities are subject to greater-than-average price volatility, illiquidity, and possibility of default. When interest rates rise, the prices of fixed income securities in the Fund will generally fall. Conversely, when interest rates fall, the prices of fixed income securities will generally rise. Investments in the Fund are subject to possible loss due to the financial failure of issuers of underlying securities and their inability to meet their debt obligations. Prepayment risk is the chance that an issuer may exercise its right to prepay its security, if falling interest rates prompt the issuer to do so. Forced to reinvest the unanticipated proceeds at lower interest rates, the Fund would experience a decline in income and lose the opportunity for additional price appreciation. The Fund may invest in floating rate loans and similar instruments which may be illiquid or less liquid than other investments. The value of any collateral can decline or be insufficient to meet the issuer’s obliga­tions. The securities issued by US Government-sponsored entities (e.g., FNMA, Freddie Mac) are neither guaranteed nor issued by the US Government. The Fund may use deriva­tives, such as swaps, inverse floating rate obligations and others, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on the Fund’s performance. Derivatives may have a leveraging effect. Investing in foreign and/or emerging market securities involves risks relating to interest rates, currency exchange rates, and economic and political conditions. These risks may increase share price volatility. There is no assurance that these and other strategies used by the Fund will be successful.

USCEXP-2018-08-24-ADID-249944 -CLC-1Y-T