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Monday, February 11, 2013

GAM announces full details of DFM proposition

  • A new range of risk-rated model portfolios
  • Access available through a unique GAM product – the personalised collective account
  • Fully transparent online valuations and reporting

Investment manager GAM has launched GAM Star Emerging Equity, an actively managed, long emerging markets equity fund in a daily-dealing UCITS format. The fund aims to profit from the inherent growth potential in global emerging market economies and the mispricings that frequently occur in these markets as they mature.

GAM today unveiled the full details of its discretionary fund management (DFM) proposition, giving independent financial advisers access to GAM's asset allocation and manager selection expertise.

GAM has extended its existing discretionary fund management service with the launch of a new dedicated offering for the UK IFA market. The newly launched Model Portfolio Service (MPS) consists of five risk-rated models that cover a range of risk/return profiles, spanning capital preservation to full equity market participation. Investors can access the models that are managed to pre-specified volatility ranges, via personalised collective accounts (PCA), platforms and segregated accounts.

PCA distinguishes GAM’s offering from other collective vehicles and multi-manager funds in the market. It provides cost-effective access to the model portfolios in a fund structure and eliminates the requirement for a segregated portfolio without compromising fully bespoke portfolio reporting. In addition, the account structure has no restrictions on the number of portfolio rebalances that can be completed on the available asset classes, and is exempt from VAT.

The MPS service is specifically designed to meet advisers’ growing requirement for investment outsourcing as a result of the Retail Distribution Review (RDR). GAM announced the expansion of its managed portfolios team last year with the recruitment of Charles Hepworth, Investment Director, and James McDaid, Investment Manager, who were tasked with developing and managing outsourcing solutions for UK independent financial advisers as part of GAM’s existing discretionary fund management service.

The MPS proposition will adopt GAM’s active investment philosophy and offer UK investors access to GAM’s high-quality investment strategies. Risk management is embedded throughout, from selecting the best managers to establishing asset allocation views and building portfolios. The service provides regular, in-depth reporting and gives investors complete transparency, making it easier for IFAs to advise their clients.

Charles Hepworth, Investment Director, says:

“GAM’s expertise in outsourced solutions has been built on a performance-driven investment approach and long-standing expertise in managing tailored private client wealth. In addition to our experience providing solutions to leading institutions and private banks, we have developed a compelling offering for financial advisers that will be suitable for a variety of clients with differing risk profiles.

We believe the launch of the PCA sets us apart from our industry peers. It saves the adviser from the time-consuming and costly process of setting up a segregated account and the client from high fixed costs and VAT implications, without compromising on detail. Clients are provided with in-depth reporting that shows the individual performance since the date of their investment, detailed breakdowns on allocations and underlying manager allocation and performance.”