Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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.

Related Fund Managers

Paul McNamara
Paul McNamara
9/31 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 13.29%
Caroline Gorman
Caroline Gorman
11/31 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 13.29%
Denise Prime
Denise Prime
10/31 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 13.29%
Niall Gallagher
Niall Gallagher
47/77 in Equity - Europe Excluding UK (Performance over 3 years) Average Total Return: 56.36%
Citywire TV
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter