GAM unveils UCITS version of Catastrophe Bond fund

GAM Asset Management has launched a UCITS version of its offshore catastrophe bond fund.

The fund is run by Fermat Capital Management, which already manages the GAM FCM Catastrophe Bond fund, focusing on securitised insurance risk via a portfolio of 40 to 50 cat bonds. Catastrophe bonds transfer the risk of natural disasters  from re-insurers to the capital markets. GAM said the cat bond market offers diversified returns with low correlation to traditional assets, and is largely independent of financial market behaviour. "In today's investment environment, where the performance of traditional and even many alternative asset classes are converging, cat bonds have demons...