GAM streamlines bond funds after strategic review

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GAM undertook a strategic review of its bond offering and used six strategies totaling 168 million euros in assets under management.

According to a note consulted by Citywire Selector sister site Citywire Italythe Swiss group has chosen to focus its attention on funds that it considers to have high conviction and high alpha generation.

Explaining the rationale for the review, GAM said: “In an environment of interest rate normalization, which will see shorter investment cycles, greater political uncertainty and higher yields, we have undertaken a strategic review of our fixed income assets.

“GAM has decided to focus its fixed income investment expertise on strategies and products capable of meeting clients’ needs in this new environment.

This ultimately means efforts will focus on catastrophe bonds, emerging markets, mortgage-backed debt and credit, as well as its recently launched sustainability-focused funds.

The group said it would not rule out launching more fixed-income products in the future, but it would be ones that would meet changing customer needs in a more volatile market.

A GAM spokesperson confirmed the memo, but said it would not name or confirm any of the officials involved. “Following the liquidation, 6 FTEs (full-time equivalent), based in the UK and the US, will be impacted.

“We are looking to onboard or redeploy these team members within GAM when possible. Consistent with local requirements, GAM will adhere to comment period obligations, when providing notices,” the spokesperson added.

The group also pointed out that the collective assets of the funds being liquidated represent less than 1% of the group’s total assets under management, while representing only a small part of the 12 billion Swiss francs (12.1 billion Swiss francs). euros) that he manages in bond strategies.

According to Citywire’s database and the latest fund fact sheets, the manager most affected by the shutdowns is Jack Flaherty, head of group credit strategies. A total of three of its funds, which cover global high yield bonds, total return bonds and dollar bonds, are set to close.

Meanwhile, two strategies overseen by GAM veteran Christof Stegmann will be closed, which span the inflation-linked bond market and a more diversified income approach. The sixth fund is managed by GAM’s extended credit team, although Andrew Dewar and Mark Pearce are appointed managers by Citywire.

The full list of affected funds, assigned managers and assets can be viewed here:



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