GAM Investments has suspended all subscriptions and redemptions in its unconstrained/absolute return bond funds (ARBF) as of 31 July 2018 by the relevant fund boards of directors following high level of redemptions.
The fund boards are considering all future steps, including fund liquidations, to maximise value and liquidity for clients. The impacted funds represented CHF7.3bn in assets under management as at 31 July 2018.
Following the suspension of Tim Haywood, the ARBF funds have experienced a high level of redemption requests. Although the funds have the necessary liquidity to serve these requests, such actions would lead to a disproportional shift in their portfolio composition, which could compromise the interests of remaining investors.
GAM is committed to ensuring equal treatment of all investors and protection of their interests. It is actively engaging with clients and is focused on resolving the situation as quickly as possible for investors. It will also cease charging any management fees to these funds while they remain suspended or if they go into liquidation.
No other part of GAM’s CHF 163.8bn business is affected. The company’s other investment teams and its third-party managers are continuing to manage client funds as normal. The Group’s investment processes and risk management across the firm remain robust.