Catastrophe insurance fund booms despite quake

The Japanese tsunami has failed to diminish demand for a fund that invests in catastrophe insurance as investors seek out assets that are not connected to the main financial markets

A listed fund investing in catastrophe insurance has been spurred to issue more shares as fears over rising interest rates and unstable markets encourage investors to look towards assets unconnected to the main financial markets.

The Catco Reinsurance Opportunities Fund, an open-ended investment vehicle listed on the London Stock Exchange, today announced that it would issue a batch of new shares having reached the limit on the amount of new capital it could raise with its existing range.

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