Swiss asset manager GAM has confirmed the liquidation of its unconstrained absolute return bond funds range, following the suspension of star manager Tim Haywood.
The group said it plans to return between 74% and 87% of its Luxembourg and Irish-domiciled Ucits funds and between 60% and 66% of assets in the Cayman master fund.
Investors can expect to receive their proportionate interest in cash from the liquidation process, the group pledged.
The total number of assets in the fund range which will be liquidated amounts to CHF7.3bn or GBP 5.6bn against the August the 2nd exchange rate.
GAM was forced to liquidate the fund after having received redemption requests in excess of 10% of its assets following the suspension of former fund manager Tim Haywood.
Haywood has been found guilty of a range of misconduct allegations in an internal investigation.
Among others, the investigation concluded that he failed to conduct sufficient evidence on fund investments, comply with the firms due diligence requirements, breaching the firms signatory, company gifts and entertainment policy.
The decision to suspend Haywood triggered investor concerns since he was personally in charge of a significant proportion of GAM’s assets.
GAM’s Group CEO Alexander S. Friedman comments: “The suspension and the subsequent decision to liquidate the ARBF funds has been a difficult process, but necessary to ensure that we deliver on our principles of acting in the best interests of all fund investors and treating them equally and fairly.”
For investors who wish to remain invested with the group’s absolute return bond fund range, the group plans to set up an alternative Ucits vehicle and Cayman fund, the group said.
