GAM has collaborated with Fermat Capital Management to launch GAM FCM Cat Bond. GAM has invested with Fermat for over 6 years and now has an exclusive arrangement to offer this fund to the broader market place.

The fund’s objective is to capture the structural return from the catastrophe market via a portfolio focused on catastrophe bonds and complimented by exposure to other insurance linked securities to produce attractive, consistent returns which are uncorrelated to traditional asset classes.

Dr John Seo, Co-Founder and Managing Principal at Fermat Capital Management said: “Given catastrophe bonds’ unique underlying risks, they are likely to remain a truly uncorrelated asset class. During the recent financial crisis, cat bonds have proven that they deserve their reputation as a genuine alternative investment strategy.”

Fermat’s investment philosophy is based on the premise that catastrophe bonds provide a persistent and repeatable source of attractive risk-adjusted returns within the broader ILS universe. The team employs a focused approach based on intensive analysis, a deep market understanding, and proprietary, highly sophisticated modelling software to create a portfolio of select issues.

Craig Wallis, Global Head of Institutional & Fund Distribution commented: “We are excited to be able to work with such a high calibre manager and to offer this very interesting investment strategy to a broader set of clients.”