GAM portfolio managers back ‘highly credible’ Liontrust takeover

In a letter to the Swiss asset manager’s board

A group of senior portfolio managers at GAM have issued a letter voicing their “strong support” for Liontrust Asset Management’s proposed acquisition of the Swiss firm, arguing that the deal is “highly credible”.

The letter, which was addressed to GAM’s board of directors, argued that taking Liontrust’s £96m offer was in the best interests of shareholders.

The portfolio manager’s vote of confidence follows plans from investor group NewGAMe and Bruellan to grow its stake in the Swiss asset manager above 10%, and potentially block the deal.

The letter of support read: “It is our view that an industry sale to a highly regarded peer with a heritage in fund management, a strong track record of acquisitions and integrations and consistently strong profitability is in the best interests of GAM clients.”

The managers argued that there was a cultural alignment between GAM and Liontrust, and that it would provide the environment and support to enable the investment teams to focus on their clients’ best interests.

“Liontrust has a clear vision for the future, with a focus on investment and wealth management only, and an impressive strategy for how to grow the enlarged company. This strategy importantly includes a commitment to developing the business in Switzerland and GAM’s global presence.”

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