GAM Investments announced today that the suspended unconstrained/absolute return bond funds (ARBF) have obtained the applicable approvals to start the liquidation process.1
All fund investors will receive their proportionate interest in cash from the liquidation process. Each fund expects to be able to make the first payments in early September, returning between 74% and 87% of the Luxembourg and Irish-domiciled UCITS funds, and between 60% and 66% of the assets in the Cayman master fund and the associated Cayman and Australian feeder funds.
GAM’s priority is to maximise value for the fund investors throughout the liquidation process, while ensuring equal and fair treatment to all. Because these funds have a mix of mainly liquid assets and some less liquid assets, GAM is focused on ensuring balance between value maximisation with speed of liquidation. The company expects to make a further distribution for each fund before the end of September, and continue distributions in the coming months, dependent on market conditions.
GAM also expects to offer alternative structures for investors who want to remain invested with the ARBF team. A UCITS fund is expected to be available for investors in the coming weeks, and the company is setting up a new Cayman fund as well.
Group CEO Alexander S. Friedman said: “The suspension and the subsequent decision to liquidate the ARBF funds has been a difficult process, but necessary to ensure that we deliver on our principles of acting in the best interests of all fund investors and treating them equally and fairly. This does not take away from the fundamental strength of GAM as a diversified asset manager.
“We have spent the past few years restructuring GAM into a more efficient business with a less volatile earnings profile, while continuing to build out high performing, specialist strategies that are relevant for our clients. This has made GAM better positioned to weather a challenging environment, and we believe we will continue to attract clients to our platform and deliver value to our investors in the years to come.
1 For the relevant Cayman funds a wind down process will be used initially, which will be followed by a formal voluntary liquidation.
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GAM is one of the world’s leading independent, pure-play asset managers. The company provides active investment solutions and products for institutions, financial intermediaries and private investors. The core investment business is complemented by private labelling services, which include management company and other support services to third-party asset managers. GAM employs over 900 people in 14 countries with investment centres in London, Cambridge, Zurich, Hong Kong, New York, Milan and Lugano. The investment managers are supported by an extensive global distribution network.
Headquartered in Zurich, GAM is listed on the SIX Swiss Exchange and is a component of the Swiss Market Index Mid (SMIM) with the symbol ‘GAM’. The Group has assets under management of CHF 163.8 billion (USD 165.0 billion) as at 30 June 2018.
Background to the liquidation of the ARBF funds
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