Gam Investment’s incoming global head of distribution Jeremy Roberts faces a tough task selling the firm’s funds given recent negative headlines, but fund selectors believe he is a solid hire for the fund group as it starts to shake off its woes.
The firm announced in a press release on Monday that Roberts (pictured) will step into the newly-created role in September. He joins from Blackrock where he was co-head of EMEA retail sales and head of UK retail.
Gam group head of sales and distribution Tim Rainsford is leaving the firm to take up a new opportunity. His role will be covered by Roberts and another individual, yet to be announced, who will occupy another newly-created position of global head of institutional solutions.
Roberts, who has 20 years’ experience in asset management with clients across UK, Europe, Asia and the Middle East, will report to Gam group CEO Peter Sanderson.
It comes after Portfolio Adviser last week revealed Gam head of UK distribution Douglas Branson had left the firm after 16 years for long-only and alternatives boutique Algebris Investments.
Gam has come out the other side of bond blow-up
Gam has been in the spotlight since the suspension and subsequent high profile dismissal of fund manager Tim Haywood and the liquidation of his £8.5bn absolute return bond fund range.
Chelsea Financial Services managing director Darius McDermott described Roberts as “very experienced” and a “good hire” to lead the firm’s sales as it bounces back.
He said: “My feeling is that Gam has come out of the other side post the big bond blow-up a few years ago and still does have an interesting business.
“We particularly rate their Credit Opportunities bond fund, UK Income and European funds, but they have plenty of other specialist funds of interest.”
Blackrock experience sets Roberts up well for success
GDIM investment manager Tom Sparke said Gam was not the easiest firm to be joining due to the recent headlines, but it is a high quality company with huge resource and some successful strategies.
“Jeremy certainly has a big task but the experience of an investment giant like Blackrock will certainly have set him up well to make success of it,” he said. “There is a wealth of experience and expertise in equities and bonds there and I think that they can make headlines for the right reasons before long.”
Willis Owen head of personal investing Adrian Lowcock also said Roberts should be able to use his experience at Blackrock to the benefit of Gam.
He said: “The business has begun to settle down after its crisis and needs a strong management team to drive its growth. I am sure Jeremy and the team are not expecting changes over night and improvements in sales will take time, but it is about putting those processes in place and creating the right environment for the business.”
Firm has a lot to bounce back from
In early April Gam announced it had “accelerated its efficiency program” to shore up CHF 65m (£54m) of total cost reductions for 2020. This included plans to reduce its headcount to 680 full-time employees by the end of the year, down from 817 at the end of 2019.
Later that month it riled shareholders with its executive pay packets for the third year running as Sanderson received CHF 1.1m (£900,000) after four months on the job.
The firm had already cut 10% of its workforce in 2019 as Sanderson’s predecessor David Jacob initiated a massive overhaul of the business.
Last month, Gam announced a £350m hit in H1 2020 mainly due to an impairment charge from when it was taken over more than 15 years ago by Julius Baer in 2005 and UBS in 1999.
Gam’s funds leaked CHF 11.1bn in 2019, taking AUM down 13% to CHF 48.4bn.
Sanderson said Roberts’ “leadership experience, enthusiasm and his passion to deliver outcomes for clients make him a great fit for Gam”.
“I am excited to welcome Jeremy to the firm to help us further build on our strong distribution capabilities,” he added. “I would also like to thank Tim for his contribution to the firm and to wish him all the best for the future.”
