Elementum launches Njord Cat Bond Fund, with higher-yield US wind-focus

Elementum Advisors, LLC, the alternative investment manager that specialises in collateralized natural catastrophe event reinsurance investments, has announced the launch of a new higher-yield focused, multi-investor catastrophe bond fund strategy.

The Elementum Njord Cat Bond Fund, Ltd. was launched on February 15th and will have a focus on investments into higher-risk premia US wind catastrophe bonds.

Through the Njord Cat Bond Fund, Elementum will provide investors with access to the returns of US Wind exposure that is relatively in-line with the overall cat bond market.

US wind remains the dominant peril in the catastrophe bond marketplace, with over three-quarters of it comprised of US Wind-exposed cat bonds as of January 2025, Elementum noted.

Njord’s structural approach will be based on an Elementum-managed portfolio with a 15-year track record, the company said, demonstrating its significant experience in managing cat bond investments.

While the new cat bond fund strategy will be open to all qualified investors globally, Elementum noted that Njord will be able to provide unlimited fund capacity to ERISA clients, which is specific to US investors.

John DeCaro, Founding Partner of Elementum Advisors, commented, “The characteristics of a cat bond portfolio with US Wind exposure consistent with the overall market were designed to appeal to a wide range of investors, including ERISA clients.

“Njord is one of many initiatives that Elementum is pursuing in 2025 to further differentiate ourselves within a competitive ILS marketplace.”

Recently, Elementum had announced the launch of its Enhanced Yield Strategy, which expanded the ILS managers collateralized reinsurance investment range.

Elementum said that the newly launched Njord Cat Bond Fund is aimed at capitalising on the robust growth seen in the catastrophe bond market recently, as well as the market’s continued concentration in US perils.

Hence, Njord thoughtfully expands the Elementum product suite, the ILS manager said, while responding to market trends.

Jeff Davis, Partner and Portfolio Manager for Elementum and the lead for day-to-day cat bond investment management, said, “Njord enhances Elementum’s existing cat bond fund offerings and provides investors an opportunity to access our differentiated investment approach while also gaining an exposure profile that is designed to be more representative of the broader cat bond market.”