Gam to liquidate nine bond funds

The Swiss asset manager gated redemptions from the range last week


Gam wrote to investors on Friday informing them that the board of directors had decided to place the suspended unconstrained absolute return bond funds, formerly run by Tim Haywood (pictured), into liquidation.

The move is still subject to regulatory and shareholder approval.

The asset manager said it expects shareholders will periodically receive their proportionate interest in cash as it becomes available throughout the liquidation process. It said it is working with each of the fund boards to maximise liquidity and value for investors.

The funds were frozen last week after experiencing “high levels of redemptions” following news of Haywood’s suspension.

Commenting on the decision to liquidate the funds, Tim Rainsford, group head of sales and distribution, said: “We fully support the independent fund boards’ recommendation to move these funds into liquidation. We believe that this decision underscores our commitment to treating all clients equally and fairly and to ensuring that investors receive proceeds in a timely manner. Despite the short-term implications of these liquidations for GAM, our decisions continue to be guided by what’s best for our clients.”

The following funds are affected:

GAM Absolute Return Bond
GAM Absolute Return Bond Defender
GAM Absolute Return Bond Plus
GAM Star Absolute Return Bond
GAM Star Absolute Return Bond Defender
GAM Star Absolute Return Plus
GAM Star Dynamic Global Bond
GAM Absolute Return Bond Master Fund
GAM Unconstrained Bond Fund

The Gam Star Dynamic Global Bond fund is held by two Gam funds, according to FE Analytics. The €2bn Gam Absolute Return Bond fund, which sits in the Targeted Absolute Return sector, has a 3.1% allocation.

The €1.8bn Gam Absolute Return Bond Plus fund holds 2.6%.