The GAM Star Pharo Emerging Market Debt & FX Fund, currently managed by Pharo Global Advisors, is to be moved in-house following GAM’s successful integration of currency specialist Augustus Asset Managers.
The fund is consequently to change its name to GAM Star Emerging Markets Total Return, and will be managed by GAM investment director Paul McNamara, formerly of Augustus AM.
“GAM will be able to utilise its in-house emerging market debt expertise and pass on lower fees and more frequent dealing to our clients,” said Craig Wallis, global head of institutional and fund distribution at GAM.
The fund’s investment objective remains unchanged.
The other proposed changes are as follows:
- GAM’s Star Absolute Emerging Markets and Star Frontier Equity funds will now be able to invest in credit default swaps to hedge against credit risk;
- Its Star Emerging Market Rates offering will be able to invest in debt securities from developed markets “undergoing a period of financial stress” as well as those of emerging markets;
- The Star Global Selector fund will now be able to invest in deposits and money market instruments in times of more defensive positioning. A performance fee of 15% of gains in excess of 3-month Libor, subject to a high water mark, will be applied to new share classes. The fund’s existing share classes will no longer accept subscriptions as of 1 August and the new AMC will be 1.25%;
- The Star Composite Absolute Return fund will now be able to gain exposure to trading strategies through direct investment in Ucits III trading funds. Dealing in the fund will change from fortnightly to weekly, while the fund’s permitted exposure to equities will be expanded from 10%-100% to 0%-100% of its net assets to provide asset allocation flexibility.
- The firm has also changed the annual administration fee for institutional shares in its Star Keynes Quantitative Strategies fund.