Brookmont Catastrophic Bond ETF to list on NYSE tomorrow, under ticker symbol ILS
The Brookmont Catastrophic Bond ETF will list on the New York Stock Exchange (NYSE) tomorrow April 1st under the ticker symbol ILS, making the catastrophe bond and insurance-linked securities (ILS) investment opportunity more accessible to a broader range of investors.
The launch of this new exchange traded fund strategy focused on the catastrophe bond and insurance-linked securities (ILS) asset class has been awaited by many.
With all approvals having been received some weeks ago and the fund now having an International Securities Identification Number (ISIN) of US26923N4705, CUSIP of 26923N470 and SEDOL of BSRFB11 US, the NYSE listing date will be tomorrow.
A definitive prospectus was filed with the SEC in January for the Brookmont Catastrophic Bond ETF, which will have a ticker symbol of ILS and be listed on the New York Stock Exchange (NYSE) on April 1st 2025.
It will become the first catastrophe bond focused strategy to be US exchange-listed and traded, meaning liquidity opportunities for investors are set to be far more frequent than we see with many cat bond investment funds.
Given the stock exchange listing, the ILS ETF will also be more accessible to investors, providing an opportunity for the expanding range of sophisticated allocators we see exploring the ILS asset class to tap into cat bond market returns.
We’d reported before that the Brookmont Catastrophic Bond ETF, which is being launched by Brookmont Capital Management, LLC and will sit under the ETF Opportunities Trust, will see at least 80% of its assets allocated to catastrophe bonds.
But, importantly, it can also allocate to certain other reinsurance related assets as well, such as collateralized reinsurance, quota shares, industry loss warranties, as well as other insurance or reinsurance-related bonds.
Some of those other insurance and reinsurance related bonds may have greater liquidity, or a different liquidity profile, than the cat bond market, which could assist the managers of the portfolio.
As we reported first back in December, King Ridge Capital Advisors LLC, an insurance-linked securities (ILS) focused investment specialist launched by industry stalwarts Rick Pagnani and Vijay Manghnani will act as the sub-adviser to this cat bond ETF, effectively managing the cat bond and ILS portfolio.
We spoke with Ethan Powell, Principal & Chief Investment Officer of Brookmont Capital Management, LLC and Rick Pagnani, co-founder of King Ridge Capital Advisors LLC, back in February to explore the topic of liquidity, in relation to the ILS ETF impending launch.
As we’ve explained, unlike ETF funds that seek to closely track a market benchmark or index, the Brookmont Catastrophic Bond ETF will be actively managed instead, which should serve to minimise concerns related to cat bond market liquidity and whether it is sufficient to support such a strategy.
This catastrophe bond ETF is expected to work with traditional ETF market participants, as well as the typical cat bond trading desks, while market makers and authorised participants are also expected to be involved in the trading and distribution of fund units on the exchange.
Ethan Powell, Principal & Chief Investment Officer of Brookmont Capital Management, LLC, told us, “We are excited to be a part of the cat bond market’s maturation.
“We hope this fund provides investors with better access and understanding of this market that will play a critical role in driving economic resilience in high peril geographies.”
Rick Pagnani, co-founder of King Ridge Capital Advisors LLC, further stated, “Our aim goes beyond merely launching a product; we strive to advance this asset class by broadening its accessibility, enhancing market depth, and fostering innovation in risk transfer solutions.”
It’s going to be intriguing to watch how investors respond to this new exchange-traded fund strategy, as the launch of the Brookmont Catastrophic Bond ETF brings a new dimension to the catastrophe bond investment landscape.
Also read: Cat Bond ETF liquidity Q&A: Brookmont Capital Management and King Ridge Capital Advisors.
