Plans for Europe’s first catastrophe bond ETF have been put on hold due to slow early inflows in the US and a toughening regulatory backdrop.
Brookmont Capital Management has instead decided to focus its efforts on scaling its US-listed fund before revisiting the Europe opportunity, said Ethan Powell, CIO of the Texas-based manager.
“For now, we’re really focused on the US. We need to reach breakeven in that geography before looking abroad,” he explained.
In April, ETF Stream reported that Brookmont was plotting to launch a Europe-listed version of its trailblazing US-listed catastrophe bond ETF and had engaged white-label platform HANetf to assist with the project.
‘Cat bonds’, an insurance-linked security (ILS), are issued by insurance and reinsurance companies to transfer the risks arising from natural disasters. They typically carry yields in the low double-digits but…
