GAM has suspended all subscriptions and redemptions in its unconstrained/absolute return funds (ARBF) following a high level of redemptions following the supension of Tim Haywood, head of ARBF.
The funds hold CHF 7.3 billion in assets under management as of 31 July.
GAM said in a statement that relevant fund boards are considering ‘all future steps, including fund liquidations, to maximise value and liquidity for clients.’
According to GAM, the funds have experienced a high level of redemption requests since the suspension of Haywood was announced on 31 July. Fulfilling these requests would lead to a ‘disproportional shift in [the funds’] portfolio composition’ which could jeopardize investors.
Group CEO Alexander Friedman said the firm is looking at setting up alternative structures for clients who want to continue on with the ARBF team.