GAM's alternative risk premia strategy exceeds $2bn

Ridhima Sharma
GAM's alternative risk premia strategy exceeds $2bn

GAM announced that its Alternative Risk Premiums (ARP) strategy now manages assets in excess of $2bn. In July 2019, the strategy saw new inflows from several institutional investors, with inflows rising to $600m since the beginning of 2019, and the strategy's managed assets totaling $2.4bn.

GAM Systematic's Alternative Risk Premia strategy typically targets approximately 15 risk premium strategies in the Value, Momentum and Carry style categories. The team benefits from industry-leading expertise built up over nearly 15 years, and employs a disciplined research process to design, systematically implement, and act cost-effectively on various risk premiums. The goal is to offer investors diversified sources of return.

"The difficult trading conditions and the resulting differences in ARP returns observed in the industry in 2018 have underscored the need for a specialised, experiential approach. We offer our clients a robust investment approach with experienced research specialists, a well-thought-out strategy and a meaningful portfolio construction. Assets should be distributed so that they are protected against losses without losing upside potential. With this differentiated approach, we were well positioned to meet the challenges of 2018 and benefit from the more favorable market development in 2019 », explained Lars Jaeger, head of the ARP strategy at GAM Systematic.

"Our strategy for alternative risk premiums has met with great interest from institutional investors, especially in Australia. Based on our experience, differentiated approach and track record, GAM has been selected by a number of Australian pension funds as the preferred alternative risk premia manager, "added Tim Rainsford, head of Global Sales & Distribution at GAM.