GAM launches next generation of multi asset solutions with target return range

• Dynamic, multi asset funds seeking to produce consistent, uncorrelated net returns of Libor +3% pa and Libor +5% pa regardless of market environment
• Investment in direct securities portfolios of circa 20-30 global equities, bonds, currencies and commodities trade ideas
• Sophisticated factor analytics, quantitative modelling and stress testing used for risk-driven portfolio construction.

GAM, the independent active manager, has extended its range of multi asset solutions with the launch of the GAM Star Target Return funds, managed under the leadership of Larry Hatheway, Group Head of Multi Asset Portfolio Solutions and Chief Economist.

The new multi asset funds harness an unconstrained set of global trade ideas, executed through a variety of relative value and long allocations to both traditional and non-traditional asset classes.

The GAM Star Target Return Fund and GAM Star Target Return Plus Fund aim to deliver consistent returns of Libor +3% and +5% per annum, respectively, without significant equity, duration or credit risk.

Targeting wholesale intermediary and institutional clients, the new range provides investors with access to investments designed to deliver steady capital appreciation independent of broader market direction. Typically the funds will hold circa 20-30 global positions.

The Target Return team of eight investment managers and risk managers are supported by a further 11 investment professionals from GAM’s specialist Multi Asset Class Solutions (MACS) team based across London, Zurich and Milan. With USD 11.9 billion assets under management, the MACS team has extensive expertise across the full range of available asset classes.

The team’s rigorous three step investment process involves developing trade ideas that capture macro drivers, market anomalies, themes and technicals, followed by disciplined factor-based portfolio construction, with ongoing portfolio and risk management through in-depth factor attribution and stress testing.

Larry Hatheway said: “GAM has been managing multi asset solutions since 1983 and the launch of the target return range is an expansion of our long-standing experience investing across asset classes for private clients and institutions.”

“Target return products can offer an attractive alternative to bonds while minimising duration and credit risk. Investors are increasingly turning to outcome focused investment solutions that provide diversification to traditional asset allocation. We anticipate strong demand for these new solutions.”