Cat bond fund news

Having competed with demand for a couple of months, seasonality seemingly took over in the catastrophe bond market in April 2025, as spread widening returned and lifted the overall yield of the catastrophe bond market to 10.86% by May 2nd, according to the latest data from Plenum Investments.

In an announcement today GAM Investments (GAM) and Fermat Capital Management (Fermat) said that they have reached a mutual agreement that will see Fermat becoming the sole manager of the offshore GAM FCM Cat Bond Fund, with GAM to have no ongoing involvement in the strategy.

The GAM Star Cat Bond Fund strategy has experienced a meaningful outflow of investor capital we understand, with the UCITS fund’s assets under management declining by approximately 25%, or around US $650 million, just in the month of April 2025.

Specialist insurance-linked securities investment manager Twelve Securis has put in place a temporary restriction on new subscriptions to its flagship Twelve Cat Bond Fund, as the manager looks to manage flows as the strategy reaches a new record size.

RenaissanceRe, the Bermuda based reinsurance firm and third-party capital specialist, is anticipating that its assets under management (AUM) across its joint-ventures and ILS funds will be “stable to up” over the rest of 2025, while fee income should resume its typical run-rate over the coming quarters.

The team behind the Brookmont Catastrophic Bond ETF (ILS) says its strategy is built on deep diversification and a long-term aim to outperform the broader catastrophe bond market on a risk-adjusted basis.

During the first-quarter of 2025, the trend in the catastrophe bond market was one of issuances upsizing and pricing down thanks to elevated levels of investor demand and robust capital levels in the sector.

RenaissanceRe, the Bermuda based reinsurance company and third-party capital manager, has raised almost $462 million in new third-party capital across its range of joint-ventures and insurance-linked securities (ILS) funds in the first-quarter of 2025, but the California wildfires saw losses shared with investors and dented the firms fee income for the period.

Brookmont Capital Management, LLC is reportedly looking at options to bring its US listed catastrophe bond ETF to Europe, which would expand the universe of investors able to allocate to the firm’s cat bond strategy.

Euler ILS Partners, the specialist Swiss insurance-linked securities (ILS) investment manager, has hired experienced capital raising specialist Alexander Loosley to its Executive Board, as Head of Capital Formation and Strategic Initiatives.