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GAM merges A-rated Love's EM equity fund into new strategy

GAM merges A-rated Love's EM equity fund into new strategy

Swiss asset management group GAM has opted to merge its emerging market equity fund run by Citywire A-rated manager Tim Love into a newly-launched fund overseen by Julius Baer.

The GAM Star Emerging Equity, a Dublin-domiciled fund launched in March 2012 for Love that has accumulated $50 million in assets, will be formally rolled into the Julius Baer Multistock Emerging Equity fund next month.

In a notice to shareholders, GAM said it has taken the decision to tap into the wider distribution network available through Julius Baer. The Zurich-based group has funds registered for sale in 25 countries worldwide and 200 distribution agreements in place.

‘The receiving fund will have an improved potential for growing its assets given its access to additional client segments, in particular wholesale distribution channels in continental Europe and elsewhere,’ the group said in a statement.

The existing fund is currently registered for sale in Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, Portugal and the UK.

Meanwhile, the Julius Baer Multistock Emerging Equity fund is only currently registered for sale in Ireland. However, the group said it intends to register the fund for sale in countries where the merging fund had been registered for sale.

GAM was approached for comment but was unavailable at the time of publication.

Over the 21 months from March 2012 to December 2014, the GAM Star Emerging Equity fund returned 5%, while its Citywire benchmark, the MSCI EM (Emerging Markets) TR USD, fell 0.26% in US dollar terms over the same period.

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