Managed Fund Solutions

Defaqto 5 Diamond Rating

Defaqto 5 Diamond Rating applies to our GAM Managed Fund Solutions only. Defaqto is an independent financial information business and ratings should not be taken as recommendation.

GAM Managed Fund Solutions’ multi-asset, volatility-managed strategies seek long-term capital growth over an investment cycle and are designed to suit a range of client needs. GAM’s experienced Multi-Asset team, led by Andrea Quapp, invest in a diversified pool of talented managers both globally and across asset classes. The five portfolios are scaled to various risk levels, with a strong focus on cost efficiency at the underlying fund level.

Our Edge

Strong 35+ year heritage

Since inception in 1983, GAM has a long history of successful multi-asset class investing across all market environments.

Manager selection and research

The Manager and investment team’s expertise in selecting managers that have shown consistent alpha generation over an investment cycle is backed by our Manager Research team which has been seeking outstanding managers for over 25 years.

Unconstrained approach

The team seeks the most talented managers across asset classes in order to deliver the appropriate balance between capital preservation and appreciation, within clearly-defined risk objectives.

Risk-driven process

‘Distribution Technology’ provides an independent risk assessment on the strategies, and portfolios are continually monitored and rebalanced to ensure risk profiles remains on target.

Investment Team

GAM Managed Fund Solutions is managed by Andrea Quapp who joined GAM in 2001. Andrea has over 35 years’ investment expertise and offer investors a wealth of experience managing multi-asset portfolios through institutional grade processes, style and risk management. Andrea is backed by GAM’s resources and a specialist team with broad expertise across wide range of asset classes and solutions.

They work closely with GAM’s ‘Manager Research’ Team, which has been conducting extensive due diligence on managers since 1989. Both the Manager Research and dedicated Operational Due Diligence teams perform thorough investigative work on every fund and rate each manager before it is deemed fit for inclusion in the funds.

An additional risk oversight function is performed independently by GAM’s risk teams.

We create fully diversified portfolios that combine GAM’s expertise in asset allocation, fund manager research and active investment management. We then scale these portfolios to various risk levels to offer clients the most suitable investment products

Andrea Quapp

Lead Investment Director, Multi-Asset Class Solutions (MACS) Continental Europe

Insights Hub

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Philosophy and Process

Investment Philosophy

The team believes a multi-asset approach is the most effective way to achieve long-term investment goals, and active management – at the asset allocation and manager levels – can add significant value for clients. Given that the best performing asset class typically changes year on year, the team believes it is impossible to pick a singular winner consistently and with absolute certainty. Therefore they believe active asset allocation across a diversified, uncorrelated mix of equities, fixed income, absolute return, alternatives and cash is the best way to achieve steady, consistent returns, while investing in talented managers seeks to maximise the chances of achieving the desired results.

Process

The process combines a top-down asset allocation framework with bottom-up manager research. GAM’s AAC determines the allocation across asset classes, regions and currency markets, based on strategic and tactical views. The Manager Research team reduces the global universe of 50,000 funds to 6,000, which are mapped in a proprietary database, and then creates a watchlist of approximately 135 funds. The team selects managers that fit with their market views to create portfolios of approximately 25 funds. They re-examine their asset allocation views, trade ideas and monitor performance on a ‘live’, continuous basis and during regular, structured reviews. Through continuous assessment and adjustment of the asset mix, they seek to invest in funds that can demonstrate consistent long-term performance.

Form investment views

AAC informs asset allocation decisions across strategies
Review asset classes, regions and markets; identify key risk scenarios

Manager research

Responsible for initial manager due diligence and ongoing monitoring
~350 managers interviewed and reviewed annually

Portfolio construction

Select managers with outstanding skills and ‘an edge’ in their respective areas
‘Distribution Technology’ risk profiling used for volatility monitoring

Portfolio and risk management

Quarterly call/meeting with each invested manager
Comprehensive risk oversight from the Manager and investment team’s, AAC, DT and GAM’s risk team

Reasons to Invest

Active approach

Active asset allocation followed by strategic rebalancing is the foundation of a long-term investment strategy and is a key determinant in the pursuit of steady, consistent returns.

Global, diversified portfolios

A focus on asset allocation worldwide that reaches beyond traditional asset classes (particularly alternatives) positions the portfolios to benefit from a global opportunity set and capture future growth opportunities.

Benefits of outsourcing

Discretionary management outsourcing of clients’ assets to skilled providers gives advisors the freedom to focus on core business activities and client relationships, without the burden of portfolio management decision making.

Range of volatility-targeted models

A range of risk profiles offers the flexibility to provide solutions that match an array of clients’ needs.

Key Risks

Capital at risk

All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Counterparty risk / derivatives

If a counterparty to a financial derivative contract were to default, the value of the contract, the cost to replace it and any cash or securities held by the counterparty to facilitate it, may be lost.

Leverage Risk

Derivatives may multiply the exposure to underlying assets and expose the Fund to the risk of substantial losses.

Credit risk / debt securities

Bonds may be subject to significant fluctuations in value. Bonds are subject to credit risk and interest rate risk.

Credit risk / non-investment grade

Non-investment grade securities, which will generally pay higher yields than more highly rated securities, will be subject to greater market and credit risk, affecting the performance of the Fund.

Credit risk / structured products

Should the counterparty to a structured note default, the value of those structured notes may be nil.

Interest Rate Risk

A rise or fall in interest rates causes fluctuations in the value of fixed income securities, which may result in a decline or an increase in the value of such investments.

Currency Risk

The value of investments in assets that are denominated in currencies other than the base currency will be affected by changes in the relevant exchange rates which may cause a decline.

Currency Risk [non base currency share class]

Non-base currency share classes may or may not be hedged to the base currency of the Fund. Changes in exchange rates will have an impact on the value of shares in the Fund which are not denominated in the base currency. Where hedging strategies are employed, they may not be fully effective.

Market Risk / Emerging Markets

Emerging markets will generally be subject to greater political, market, counterparty and operational risks.

Equity

Investments in equities (directly or indirectly via derivatives) may be subject to significant fluctuations in value.

Operational risk / third parties

Investments in other funds have direct and indirect dependence on other service providers. The Fund may suffer disruption or loss in the event of their failure.

Liquidity Risk (Fund of Funds)

Investments in other funds are subject to the liquidity of those underlying funds. If underlying funds suspend or defer payment of redemption proceeds, the Fund's ability to meet redemption requests may also be affected.

Brexit Risk

The regulatory regime to which certain of the Investment Managers are subject to in the UK could be materially and adversely affected. The decision to leave the EU could also result in substantial volatility in foreign exchange markets and a sustained period of uncertainty for the UK, the EU and the global markets in general.

Investment Illustration

We provide personalised investment illustrations for use with your clients.

Please Contact us to receive one.

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Mentions légales: Les performances passées ne sont pas un indicateur des performances futures ni des tendances actuelles ou futures. Les indications pourraient se fonder sur des chiffres libellés dans une devise pouvant différer de la devise de votre pays de résidence et le rendement peut de ce fait évoluer à la hausse comme à la baisse en conséquence de fluctuations de change. Capital sous risque: Les instruments financiers engendrent un facteur de risque. Par conséquent, la valeur de l’investissement et le rendement qui en résulte peuvent varier et la valeur initiale de l’investissement investi ne peut pas être garantie. Aucune référence à un titre financier ne saurait constituer une recommandation d'achat ou de vente de ce titre.