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Exclusive: GAM set to liquidate Haywood’s absolute return fund range

Swiss asset manager pulls plug on nine funds.

Exclusive: GAM set to liquidate Haywood’s absolute return fund range

GAM has recommended the liquidation of its nine-strong absolute return bond fund range overseen by Citywire + rated Timothy Haywood, Wealth Manager sister title Citywire Selector can reveal.

In a statement to shareholders, seen by Citywire Selector, the fund board stated it had opted to liquidate all the currently-suspended funds in the unconstrained/absolute return fund range.

This comes in the wake of a series of revelations from the Zurich-based asset manager, which began with Haywood being suspended in the wake of an internal investigation into risk management.

The proposed liquidation refers to the entire range of funds overseen by Haywood, which had totalled CHF 11 billion (€9.4 billion) in assets at the time of his suspension. GAM moved to suspend trading in the funds shortly after the suspension.

The funds which are being put forward to be liquidated are the:

In the note to shareholders, Tim Rainsford, group head of sales and distribution, said: ‘We believe that the liquidation approach will allow investors the opportunity to receive proceeds in a more timely manner and ensure equal treatment.

‘It is expected that all fund shareholders would periodically receive their proportionate interest in cash as it becomes available throughout the liquidation process. GAM is working with each of the fund boards to maximise liquidity and value for investors.’

GAM said it is working to establish alternative structures for fund shareholders who want to remain invested with the absolute return bond funds team.

Stock update

Shares in GAM were already down 4.8% on the day and briefly fell further on the announcement, before recovering to a loss of 4.3%; at the Swiss market’s close, the stock was trading at CHF 8.815, a 24% decline in value since the story first broke on the 30th July.

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