GAM has become the latest group to hard-close some of its retail funds. Following last month’s decision by Old Mutual to close its £454m UK Select Smaller Companies fund, GAM has announced plans to cap the number of units in issue for its UK Diversified and Global Diversified Oeics.
Both funds at GAM are managed by Andrew Green and at present are worth a combined £1.3bn in assets under management. Overall Green manages £4.1bn at GAM, which the group says is a level approaching capacity for his investment style.
As a result it has announced it will cap the number of units in the UK Diversified fund at 88 million and Global Diversified at 40.5 million. As at November 23, there were about 80.5 million units in the UK fund and 37.8 million in the Global.
If by December 29 both funds do not reach this size they will simply close for new investment at that date. In addition, the GAM Exempt Trust, also managed by Green, will close to new investment.
According to GAM, the funds will continue to be managed using the same investment style, which is described as deep-value, contrarian.
Green’s style is to buy out-of-favour and undervalued stocks, with a view to selling them when their inherent value is recognised by the market.