Zürcher Kantonalbank (ZKB) and GAM Holding AG have announced a transaction between their asset management units.
ZKB will take over the investment management and marketing of four Swiss precious metals funds with assets under management of CHF1.8bn from GAM. As part of this transaction, GAM's money market funds with assets under management of CHF0.4bn will also be transferred. The purchase price amounts to CHF14m, which corresponds to around 0.6 % of the acquired assets.
No GAM employees will be transferring to Zürcher Kantonalbank as a result of the transaction. The transaction is expected to be completed in the third quarter of 2019, subject to the approval of the competent authorities.
Upon completion of the transaction, ZKB will become the investment manager for these investment funds and will be responsible for all related marketing activities. The funds' investment objectives, investment universe and investment approach will remain unchanged. GAM will continue to act as the fund management company through its private labelling unit. State Street Bank and Bank Julius Baer will remain the custodian banks.
Iwan Deplazes, head of Swiss canto Invest by Zürcher Kantonalbank, said: "This acquisition is a very good strategic fit with our portfolio and will enable us to further strengthen our position in areas in which we are already very well positioned. Following the transaction, we will have a market share of over 60% in the Swiss precious metals ETF business. The transaction will already positively impact Zürcher Kantonalbank's results in its first year."