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Our latest insights, perspectives and updates on Insurance-Linked Securities and the Pioneer ILS Interval Fund.

PEF: New Peril a “Momentous Step”

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November 17, 2017 

 

This year the World Bank, through its Pandemic Emergency Financing Facility (PEF), offered over $500 million of coverage to developing countries against the risk of pandemic outbreaks across the next five years. This offering included $320 million in pandemic catastrophe bond issuance. 

Trend Watch: Expected Insurance Losses in 2017

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November 8, 2017 

 

Munich Re recently released its latest report of global natural catastrophe loss events and their possible near term impact on the reinsurance industry – and the results may come as a surprise.

Ask the Team

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October 26, 2017 

 

In the first half of 2017, catastrophe bonds and ILS issuance exceeded all previous records. What is driving that demand and how does it impact the market?

Portfolio Event Update: California Wildfires, Part 2

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October 19, 2017 

 

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.

Portfolio Event Update: California Wildfires, Part 1

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October 11, 2017 

 

Approximately 15 separate wildfires have been reported in the California counties of Napa, Sonoma and Yuba impacting more than 115,000 acres of land and possibly destroying 1,700 structures making these wildfires one of the most destructive on record in the state.  

Portfolio Event Update: Hurricane Nate

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October 9, 2017 

 

Hurricane Nate made landfall near the base of the Mississippi River late Saturday evening as a Category 1 storm. Nate then made a second landfall near Biloxi, Mississippi and continued toward Louisiana, passing east of New Orleans while being downgraded to a tropical storm.  

Portfolio Event Update: Raboso, Mexico Earthquake

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September 19, 2017 

 

A magnitude 7.1 earthquake struck in the state of Puebla approximately 100 miles southeast of Mexico City on September 19 shortly after 1:00 pm local time. The earthquake was at a depth of 31 miles. 

Portfolio Event Update: Hurricane Irma, Part 2

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September 14, 2017 

 

Currently the focus is on recovery and relief to victims left in the destructive path caused by Hurricane Irma. This effort may take weeks and months to fully complete.

Portfolio Event Update: Hurricane Irma, Part 1

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September 11, 2017

 

After causing significant destruction in the Virgin Islands, Puerto Rico, the Dominican Republic and Cuba, Hurricane Irma made landfall in the Florida Keys on early Sunday morning as a Category 4 storm.

Insurance-Linked Investments Can offer Attractive Diversification

July 31, 2017 

 

 

Catastrophe Bonds – The Most Familiar Form of ILS Insurance-Linked Securities

July 24, 2017 

 

For bond investors, the most familiar of these types of ILS are catastrophe bonds (CAT bonds), whose return of principal depends on the non-occurrence of a predefined catastrophic event during a specific risk period – usually one to four years in duration.

 

 

 

What are Insurance-Linked Securities?

July 17, 2017

 

Insurance-linked securities (ILS) are financial instruments whose performance depends upon insurance risk rather than traditional financial risk. The most widely accepted forms of insurance-linked securities are those related to catastrophe risk, or the risk of primarily natural disasters (perils). 

 

 

 

 

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.

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