Brookmont Cat Bond ETF definitive prospectus filed. NYSE ticker to be ILS

A definitive prospectus has just been filed with the SEC for the Brookmont Catastrophic Bond ETF, an exchange-traded fund that will invest primarily in catastrophe bonds and other insurance-linked securities (ILS).

Notably, the ticker symbol for this first-of-its-kind cat bond ETF has changed from “ROAR,” as previously indicated, to “ILS.” Once launched, shares will trade directly on the New York Stock Exchange under this symbol, making it the first cat bond-focused strategy to be listed and actively traded—a move expected to provide significantly greater liquidity than most existing cat bond investment funds.

Because it will trade on the NYSE, the ILS ETF will be more readily available to the growing number of investors exploring the ILS asset class, including retail investors who can gain access via broker-dealers. By contrast, many current ILS mutual fund strategies are limited to clients working with registered investment advisors.

As previously reported, the new ETF—launched by Brookmont Capital Management, LLC—will invest at least 80% of its assets in catastrophe bonds, with the remainder potentially allocated to other reinsurance-linked instruments such as collateralized reinsurance, quota shares, industry loss warranties, and similar securities. King Ridge Capital Advisors LLC, an ILS investment manager founded by industry veterans Rick Pagnani and Vijay Manghnani, will serve as sub-adviser and manage the ETF’s cat bond and ILS holdings.

With the filing of the definitive prospectus, the fund is a step closer to going live and could launch as early as February. There is already notable anticipation among investors who have been seeking a more accessible, actively managed path to the cat bond market. In particular, the ETF’s daily pricing and active management will be essential for reflecting real-time valuations of the underlying cat bond and ILS positions.

This launch also raises questions about liquidity providers and market makers, given their central role in the success of many ETFs and the historically limited liquidity of the cat bond market. As the fund goes live, it will be instructive to watch metrics such as trading volumes and assets under management to gauge investor adoption and assess whether this pioneering approach to cat bond investing gains significant traction.