Schroders and Krungthai Asset Management have launched two bond funds for ultra-high-net-worth clients in Thailand, providing them with access to insurance-linked securities ( ILS ).

The open-ended KTAM Catastrophe Bond Fund Not for Retail Investors and KTAM Catastrophe Bond Fund Unhedged Not for Retail Investors are now available for 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.

The launch marks an important milestone in expanding access to global ILS opportunities, an asset class that plays a unique role in portfolio diversification. ILS, which includes catastrophe bonds or “cat bonds”, offers investors an opportunity to earn income streams that are largely independent of broader economic cycles.

Returns 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, Schroders says.

Consistent outperformance

Since 2002, the Swiss Re Global Cat Bond Index has generated annualized returns of approximately 7.6% ( as of September 30 2025 ), consistently outperforming most major asset classes except global equities, while maintaining much lower volatility.

The resilience of ILS has been further reinforced by their ability to recover swiftly following severe weather events, as the reinsurance market adapts and reprices risk to sustain yield potential, according to the London-based asset manager.

The Schroder IF Flexible Cat Bond strategy, which manages over US$877 million, leverages Schroders Capital’s deep 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, Schroders says.

 The strategy forms part of Schroders Capital’s Private Debt and Credit Alternatives ( PDCA ) platform, which manages over US$30 billion globally and leverages the firm’s expertise across private credit and alternative income.