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.Fermat Capital Management will now become the sole investment manager for the US $200 million GAM FCM Cat Bond Fund which is domiciled in the British Virgin Islands.The pair announced that, “Following discussions with Fermat and given the broader characteristics of the BVI Fund, including its investment profile, the parties have agreed that Fermat will become its sole investment manager.” They also said that the BVI Fund will now go through an orderly and managed transition to Fermat.After completion of this change and transition, GAM will have no ongoing involvement with the BVI catastrophe bond fund and Fermat will take up communication with investors in the strategy.

GAM said it would like to “thank the BVI Fund board and our clients for all their support.” This news comes on the heels of the recent change to the investment management for the other GAM catastrophe bond and insurance-linked securities (ILS) fund strategies.Recall that, that it is partnering with reinsurance firm Swiss Re’s registered investment advisor unit Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC) on its cat bond and ILS fund strategies.That announcement saw Swiss Re lined up to become the co-investment manager of GAM’s ILS fund range, including the GAM Star Cat Bond UCITS Fund, as from May 7th.

incumbent manager of the portfolios of GAM’s cat bond funds, Fermat Capital Management, told us that it was not consulted on the termination of its investment management partnership with GAM.As we reported earlier today, following that news, the GAM Star Cat Bond Fund strategy experienced outflows of investor capital, with ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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