Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

AA-rated manager caught in GAM fund closures

AA-rated manager caught in GAM fund closures

GAM has closed a clutch of young funds, including one run by its star Europe manager.

Niall Gallagher, rated AA by Citywire, only launched the GAM Star Global Leaders fund in December 2012 but it has already liquidated.

Gallagher’s (pictured) principal vehicle is the £450 million GAM Star Continental European Equity, which has returned 36% over the past three years compared with an average of 24% from its Citywire sector. His new fund was to have invested along similar lines but on a global basis.

GAM has also shut the Local Emerging Bond fund it launched in 2012 for its + rated team of Paul McNamara, Caroline Gorman and Denise Prime. The trio also run the £180 million GAM Star Emerging Market Rates fund, which has returned 5.2% on a three-year view against a 6.7% average from its Citywire category.

Their new fund was to have taken a top-down and thematic approach to investing in local-currency emerging market sovereign and quasi-sovereign debt.

Finally, the GAM Star QFS Global Macro Currency fund has closed too after its manager, QFS, decided to wind up its hedge funds. GAM launched the Ucits version of the fund in August last year.

Between inception in 1993 and the end of 2012, the QFS strategy produced a net annualised return of 10.8% with a correlation of less than 0.1 to both global bonds and global equities. However, it posted consecutive losses of nearly 9% in both 2012 and 2013, the first time it had fallen two years in a row.

At their closure, all three GAM funds contained less than £10 million and a spokesperson for the firm told Wealth Manager that they had been shut due to ‘insufficient assets under management’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: from managing Brunei’s billions to Dorking’s pension pots

Profile: from managing Brunei’s billions to Dorking’s pension pots

Mole Valley Asset Management's boss on why he chucked in multi-billion mandates for Surrey wealth management

Wealth Manager on Twitter