GAM Holding AG, the parent business to worldwide possession supervisor GAM Investments, is to be obtained by expert fund management group Liontrust, with all of its mutual fund set to be rebranded, which will most likely include its big GAM Star Cat Bond Fund and other ILS techniques it handles.
Through the GAM Investment Management department, the business has around CHF 23.3 billion (£20.9 billion) of possessions since 31 March 2023.
Combined with Liontrust, the scale grows substantially, with the combined possession supervisor set to have around UK £53 billion of possessions under management.
Liontrust has a tactical goal to diversify its series of fund techniques, with options one target location.
The acquisition will substantially widen its fund and possession class offering, bringing a variety of brand-new big techniques under the Liontrust name.
Liontrust said, “GAM’s existing product offering is complementary to Liontrust’s especially in fixed income and alternatives.”
Adding that, “GAM will strengthen Liontrust’s fixed income offering, adding capabilities in: Asset Backed securities, Emerging Markets debt, Global Credit, Global Rates, Catastrophe bonds and Insurance Linked Securities.”
The possession supervisor likewise said, “Liontrust intends to rebrand all GAM funds as Liontrust as soon as possible after completion of the Proposed Acquisition and for the GAM business to operate under the Liontrust brand.”
Of course, GAM Investments uses the GAM Star Cat Bond Fund, which is the biggest UCITS disaster mutual fund in the market.
That cat mutual fund method is portfolio handled by acknowledged insurance-linked securities (ILS) company Fermat Capital Management, among the leading market names.
As we reported just recently, the biggest of the UCITS cat mutual fund at the end of Q1 2023 was the Fermat Capital Management portfolio handled GAM Star CAT Bond Fund at $2.67 billion.
This early morning, GAM highlighted the cat mutual fund method as an especially positive location for the business, with net inflows to that ILS fund in 2022 assisting to balance out outflows to other techniques in emerging market bonds and credit.
The GAM Board said that it all advises the Liontrust acquisition, stating that the combined company can “deliver growth” and deal stability and assistance to GAM as part of a bigger possession management group, while bringing a more comprehensive and more varied series of financial investment techniques to both company’s customers.
For the GAM Star Cat Bond Fund method and other insurance-linked securities (ILS) offerings, it promises these will be rebranded to Liontrust, perhaps to the Liontrust Star Cat Bond Fund.
We feel it’s most likely Fermat Capital Management, having actually handled that GAM cat mutual fund because its launch in the meantime more than a years, would be anticipated to continue to as the portfolio supervisor and consultant to the cat bond method.
The proposed acquisition is anticipated to close in the fourth-quarter of 2023.
Analyse UCITS disaster mutual fund possession development utilizing our charts here.
John Ions, Chief Executive of Liontrust, commented “This is a considerable acquisition that speeds up the development of Liontrust through boosting our circulation worldwide, item ability and financial investment skill.
“Liontrust and GAM are both customer centric businesses that grow on supplying services and superior service. The bigger business will offer the platform from which to provide this to a more comprehensive customer base.
“We have actually been impressed by the quality of the financial investment groups at GAM. There is commonness because Liontrust and GAM are both dedicated to independent and unique procedures for each of their financial investment groups. Liontrust specialises in supplying an environment in which financial investment groups can grow, consisting of through the quality of our sales and marketing and a robust business facilities, strong threat and compliance culture, and the stability that features monetary strength.
“Liontrust is dedicated to the worldwide business and customer relationships that GAM has actually constructed. We are particularly happy to have such a strong operation in Switzerland which has actually been so essential to GAM’s heritage.
“The quality of the financial investment groups throughout the various possession classes, the skill in the business and the breadth of the circulation at GAM, integrated with Liontrust’s existing financial investment ability and strong brand name, sales, marketing, and interactions, offers me terrific self-confidence we will grow the bigger business to produce long-lasting worth.
“Liontrust and GAM will work together to provide a seamless transition for clients and enhancing the service provided in the future.”
Peter Sanderson, CEO of GAM, included, “I am delighted we have agreed this transaction with Liontrust. Our distinctive approaches to investing and culture are closely aligned, and this combination represents the best opportunity for our talented team of professionals at GAM to continue to provide clients with high conviction active investment strategies. The resulting business will have a strong balance sheet, a broader array of excellent investment products, and a global distribution footprint from which to deliver growth that our shareholders can participate in the future.”
David Jacob, Chairman of GAM, likewise said, “I would like to thank all my colleagues at GAM for their hard work and dedication while we worked to determine the best option for the future of the firm. I am confident that the loyalty of our clients will be rewarded since they will now benefit from the increased capabilities and stability of the combined firm. Our shareholders have been patient, and I and my fellow Board members are unanimous in our recommendation that they should tender their shares in response to the offer from Liontrust.”
