Schroders and KTAM launch cat bonds for Thai HNWIs
Schroders in partnership with Krungthai Asset Management has launched the KTAM Catastrophe Bond fund and KTAM Catastrophe Bond Fund Unhedged fund in Thailand.
They provide Thai ultra-high-net-worth clients with access to insurance-linked securities (ILS); neither fund is available to retail investors.
The open-ended funds are now available for ongoing subscription, giving investors continued access to the global catastrophe bond market through the Schroder IF Flexible Cat Bond fund, which serves as the master fund, according to a statement by Schroders.
ILS, which includes catastrophe bonds or “cat bonds”, offers investors an opportunity to earn income streams that are linked to the occurrence or non-occurrence of predefined natural events such as hurricanes or earthquakes, which tend to show low correlation with traditional asset classes such as equities or fixed income based on historical data, said Schroders.
Since 2002, the Swiss Re Global Cat Bond Index has generated annualised returns of approximately 7.6% (as of 30 September 2025). The resilience of ILS has been reinforced by their ability to recover swiftly following severe weather events, as the reinsurance market adapts and reprices risk to sustain yield potential, Schroders added.
The Schroder IF Flexible Cat Bond strategy, which manages over $877m, uses Schroders Capital’s expertise in ILS. The ILS team comprises 37 specialist investment professionals with nearly 15 years of track record across ILS instruments.
Thai investors will benefit from institutional oversight and a Luxembourg vehicle, ensuring robust governance and industry-leading standards, according to Schroders.
The strategy forms part of Schroders Capital’s Private Debt and Credit Alternatives (PDCA) platform, which manages over $30bn globally and leverages the firm’s expertise across private credit and alternative income.
Katherine Cox, head of client group, South Asia and global official institutions, Schroders, said, “We are delighted to partner with Krungthai Asset Management to offer our Cat Bond strategy for Thailand’s ultra-high net worth investors. The strategy’s performance over the past three years underscores the appeal of insurance-linked securities as a source of diversification and resilient income for investors.”
Chavinda Hanratanakool, chief executive officer, Krungthai Asset Management, added: “Natural disasters are growing more severe, with significant impacts on lives, property and economies. However, they also present unique investment opportunities through risk transfer via catastrophe bonds.”
