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FairHorizon Yellow
Y12-A

GAM Star Fund plc - GAM Swiss Re Cat Bond Fund

Global catastrophe bonds with high US-bias. Active strategy.

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About the Fund

Data as of

GAM Investments is a Zurich-based global asset management firm founded in 1983 and manages over CHF12bn of AUM. It has ~50 investment professionals across 9 affiliated third party managers, providing active strategies in discretionary, systematic and specialist solutions across fixed income, equity, multi-asset and alternatives asset classes.

Swiss Re Insurance-Linked Investment Advisors Corporation (SRILIAC) was setup in 2022 by Swiss Re, one of the world’s largest reinsurers, to provide specialist expertise in natural catastrophe modelling, underwriting, ILS trading and portfolio management. SRILIAC took on the investment management role for the fund since May-2025.

The GAM Swiss Re Cat Bond Fund is an actively managed bond strategy that seeks to generate returns through selective investment in a global portfolio of catastrophe bonds, which is a type of insurance-linked securities (ILS) whereby investors receive a risk premium in the form of a yield in exchange for bearing the risk of losses from predefined natural and non-natural catastrophic events, such as earthquakes or windstorms, mortality, cyber and catastrophe related events. The fund will invest principally in catastrophe bonds globally that are officially listed or traded, although given the nature of the market there is a significant US exposure of about 80% in the portfolio. There are no credit quality or maturity restrictions with respect to the catastrophe bonds invested. The portfolio has >270 positions.

Performance

Price Performance – Maximum Period

The FairHorizon Context

Investment-Time-Horizon in years

0 - 22 - 44 - 7 7 - 1010 - 1515+
Expected long-term return
5 – 7% p.a.
Expected volatility
7 – 10% p.a.

Building Block Returns

GAM Star Fund plc - GAM Swiss Re Cat Bond Fund

Ann. return (3-year):
—
Ann. return (5-year):
—
Ann. return (10-year):
—
Ann. Standard Deviation (5-year):
—

This fund represents an active approach for exposure to global catastrophe bond market segment that has low correlation to traditional bonds.

Benchmark Returns

iShares Global High Yield Corp Bond UCITS ETF

Ann. return (3-year):
8.03%
Ann. return (5-year):
2.76%
Ann. return (10-year):
3.82%
Ann. Standard Deviation (5-year):
8.88%

FairHorizon Benchmark Returns

Dimensional Funds PLC - World Allocation 60/40 Fund

Ann. return (3-year):
13.21%
Ann. return (5-year):
6.85%
Ann. return (10-year):
—
Ann. Standard Deviation (5-year):
9.75%
Link to the Funds FairSheet

The Dimensional World Allocation 60/40 Fund is our FAIRHORIZON Yellow reference benchmark solution that has 60% global developed equities and 40% global investment grade short-to-medium maturity bonds for global high risk bonds-like or multi-asset returns and volatility.

SHARING OUR PASSION FOR INVESTMENTS FAIRSHEET™  GAM Star Fund plc - GAM Swiss Re Cat Bond Fund  Page 1/2

Why we prefer this fund

Relevance of strategy

This fund represents an active approach for exposure to global catastrophe bond market segment that has low correlation to traditional bonds.

Manager expertise

The fund is managed by SRILIAC since May-2025 as a partnership with GAM, that provides expertise leveraging Swiss Re’s knowledge and proprietary natural catastrophe modelling and underwriting tools, powered by market-leading portfolio analytics and data framework.

Differentiated portfolio

The fund provides a high risk premium in the form of yields and has low correlation to financial markets, thus acts as a good risk diversifier building block.

Historical maximum drawdown & recovery time

Max drawdown (since inception)
-0.22%
Recovery Period
7 Days

Diversification

Credit Rating

  • No credit-rating data—

Sectors

  • Corporate95.10%
  • Cash2.23%
  • Government-Related1.50%
  • Treasury1.17%

Geography

  • Bermuda81.94%
  • Cayman Islands8.44%
  • Ireland2.53%
  • Cash2.23%
  • Singapore1.90%
  • Supranational1.50%
  • U.S.A.1.17%
  • Others0.28%