GAM Investments announced that the suspended unconstrained/absolute return bond funds (ARBF) have obtained the applicable approvals to start the liquidation process.
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.”