GAM launches two targeted return funds

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The multi assets solution team at GAM has released two targeted return funds to invest across equities, bonds, currencies, and commodities.

The GAM Star Target Return Fund and GAM Star Target Return Plus Fund will be led by Larry Hatheway, who was appointed head of investment for multi-asset class solutions in February, after Graham Wainer stepped down from the role after just one year.

The funds will hold 20 to 30 global positions and aim to deliver uncorrelated capital appreciation.

The GAM Star Target Return Fund aims to deliver Libor +3 per cent without significant equity, duration or credit risk. The GAM Star Target Return Plus Fund aims to deliver Libor +5 per cent.

Hatheway will lead a team of eight investment and risk managers, supported by a further 11 investment professionals based across London, Zurich and Milan.

The team’s investment process aims to capture macro drivers, market anomalies, themes and technicals.

Hatheway said: “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.”

The multi asset class solutions team currently manages $11.9bn.