Senior portfolio managers at Swiss asset supervisor GAM Investments have stated they assist proposed takeover by British Liontrust Asset Administration, which is deliberate to be completer later within the 12 months.
They’ve written to the corporate’s board after tales broke of a rival problem from Swiss entrepreneur Marco Garzetti.
Mr Garzetti stated he would do “no matter it takes” to maintain the Swiss fund administration group impartial in an open letter to GAM shareholders on Friday.
GAM fund managers have responded with their very own letter despatched yesterday to the corporate’s board of administrators.
In it they stated they strongly assist the choice by the board to suggest the supply from Liontrust for all shares in GAM on the premise that they imagine this to be in one of the best pursuits of GAM purchasers.
The senior portfolio managers wrote that “it’s our view that an business sale to a extremely regarded peer with a heritage in fund administration, a robust observe report of acquisitions and integrations and constantly robust profitability is in one of the best pursuits of GAM purchasers.”
“We imagine there’s a cultural alignment between GAM and Liontrust, and it will present the surroundings and assist to allow the funding groups to deal with their purchasers’ greatest pursuits.”
“Liontrust has a transparent imaginative and prescient for the long run, with a deal with funding and wealth administration solely, and a formidable technique for find out how to develop the enlarged firm. This technique importantly features a dedication to creating the enterprise in Switzerland and GAM’s international presence.”
The Swiss agency agreed to be taken over by British rival Liontrust earlier this month in an estimated £96m deal, with the acquisition anticipated to finish within the remaining quarter of this 12 months.
GAM has had a turbulent few years, hit by a falling share worth and buyer outflows.
It’s headquartered in Zurich, employs 594 folks in 14 international locations and has UK funding centres in London and Cambridge.
Liontrust plans to merge the funding administration companies which may have 12 funds with property greater than £1bn (seven managed by Liontrust and 5 by GAM).
The fund supervisor intends to rebrand all GAM funds as Liontrust.
