Fermat Capital launches new ILS fund in Australia, seeded by superannuation fund

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Insurance-linked securities and catastrophe bond investment manager Fermat Capital have, along with specialist investment advisor, Brookvine, launched a new fund in Australia called the Fermat ILS Yield Fund. The new fund will invest in catastrophe bonds and Fermat Capital will manage the investment side of it while Brookvine will assist with marketing and client servicing management as well as having provided Fermat with advice on entry to the Australian and New Zealand investment markets.

The Fermat ILS Yield Fund has been seeded with a AU$30m investment from one of Australia’s largest superannuation funds, NGS Super, the AU$4.4 billion superannuation fund for employees in education and community-focused organisations. By seeding the new ILS fund NGS Super are seeking to diversify from equity risks by trying out a new asset class and attain the high returns that catastrophe bonds regularly offer according to their CEO Anthony Rodwell-Ball.