GAM Swiss Re fund tops $2bn as fees climb
The GAM Swiss Re Cat Bond UCITS Fund has surpassed $2 billion in assets under management, reaching $2.03 billion as of August 4th, 2026. The asset manager’s performance fee income from the fund rose to 6.0 million Swiss francs in the first half of the year.
Growth driven by demand and valuation terms
The fund invests in catastrophe bonds and insurance-linked securities. It ended the first half of 2026 with nearly $2 billion before climbing further in early August. At the end of 2025, it held $1.56 billion, adding roughly $470 million in assets over eight months.
Sustained client demand and improved valuation terms fueled the increase. The firm’s broader alternatives business, where the fund resides, accounted for most gross inflows during the period. Catastrophe bonds were among the strongest areas of interest in the company’s half-year results.
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Performance fees jump as partnership matures
Higher assets translated into increased fee income for GAM. Performance fees from the fund reached CHF 6.0 million in the first half of 2026, up from CHF 1.6 million a year earlier. The rise stems from a fee-sharing arrangement with Swiss Re, the global reinsurer co-managing the fund through its investment adviser subsidiary.
The partnership completed its first full year in early 2026 and is now fully integrated. It combines Swiss Re’s expertise with GAM’s product development and distribution capabilities, offering clients specialized insurance-linked strategies. A longer track record should help meet institutional due diligence requirements and expand distribution.
The UCITS structure broadens appeal to a wider range of investors, including those outside traditional ILS markets.
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GAM’s results indicate the fund’s performance has attracted investors. Alternatives remained a bright spot in its portfolio.
Reinsurers and asset managers increasingly collaborate to connect insurance risk with capital markets. Swiss Re, a leading reinsurer, has long been active in the ILS space, using underwriting expertise to structure deals for institutional investors.
While once niche, the cat bond market’s growth shows investors diversifying into yield-generating assets. The UCITS status makes it accessible to European investors.
