Catastrophe bond fund news

Arbuthnot Latham, a UK based private banking, wealth and investment management specialist, has made its first allocation to a catastrophe bond fund after spending time analysing the asset class and gaining an appreciation for the relatively uncorrelated returns cat bonds can offer.

The overall yield of the catastrophe bond market rose slightly to 10.93% by May 30th 2025, as seasonal spread widening now nears its end and a returning trend of rising prices is anticipated, according to Plenum Investments.

The GAM Investments operated Star Cat Bond Fund UCITS strategy saw its catastrophe bond assets under management rise at the latest reporting of net asset values, halting a decline that began after ending its long relationship with the fund’s previous portfolio manager, Fermat Capital Management.

Third-party investor capital under management at Bermudian global reinsurer RenaissanceRe’s Capital Partners division rose by roughly $770 million in the year to March 31st 2025, taking the total to a new high of $7.94 billion.

We’ve published this article as an earlier piece on UCITS catastrophe bond fund performance was incorrect, there was an error in the data we received. Based on new data, the average return of UCITS cat bond funds tracked by the Plenum CAT Bond UCITS Fund Indices was flat at the first pricing in May, but […]

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.