No major new insurance events occurred during the month, however, there was a winter storm called Ulmer on the west coast of the US and a hail event in Texas. Both events were rather small in terms of insured losses, nevertheless they resulted in some further erosion of the aggregate deductible limit of the Residential Re Cat Bonds, held within the Fund. This position had already suffered following the natural catastrophe events of 2018. Furthermore, Akibare 2016-1, a transaction which the Fund holds, saw ongoing loss-creep from Typhoon Jebi which made landfall in Japan in 2018. With Dodeka XXI and Dodeka XXII Twelve Capital brought two additional private Cat Bonds to the market. Both transactions mainly cover earthquake and hurricane risks on a worldwide basis. Positions in both Dodekas were purchased for the Fund on the basis of the attractive risk and return metrics. Primary issuance continued with a new Cat Bond  alled Bowline covering all natural perils in the US. Bowline came in two tranches, Notes A (with an expected loss of 1.36%) and Notes B (with an expected loss of 3.69%). A position was  purchased for the Fund in Notes A, the tranche with the lower level of risk. As the North Atlantic Hurricane season approaches, Twelve Capital expects a healthy primary market pipeline over the next weeks.

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