GAM Floats Star Cat Bond Fund

GAM Asset Management has rolled out Dublin-domiciled Gam Star Cat Bond fund, Financial Times reports. The product is managed by Fermat Capital Management, which already runs the GAM FCM Catastrophe Bond fund, focusing on securitized insurance risk through a portfolio of 40 to 50 cat bonds. GAM has $60.2 billion in assets under management.

The cat bond market offers diversified returns with low correlation to traditional assets, and is largely independent of financial market behavior, adds Investment Week. The fund will carry an annual management charge of 1.45 percent and a performance fee of 10 percent charged on cash outperformance, with a high water mark.

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