The new funds use 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. Typically the funds will hold 20-30 global positions.
The range is targeted at wholesale intermediary and institutional clients.
The management team consists of eight investment managers and risk managers supported by a further 11 investment professionals from GAM’s multi asset class solutions team based across London, Zurich and Milan. The team has $11.9bn in assets under management.
“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,” said Hatheway.
“Target return products can offer an attractive alternative to bonds while minimising duration and credit risk,” he continued. “Investors are increasingly turning to outcome focused investment solutions that provide diversification to traditional asset allocation. We anticipate strong demand for these new solutions.”