GAM is preparing to soft-close two of its most recently launched funds, Star Global Rates and Star Discretionary FX.
The funds are versions of a hedge fund strategy that the group converted to Ucits III and brought to the retail market late last year. The overarching strategy is now within £67m of reaching its £1bn capacity.
Inflows into each fund could cause the umbrella strategy to hit its target by the end of this month, says Craig Wallis, GAM’s group head of institutional and fund distribution.
The strategy will then take in just £13m a month, and as much as recycling redemptions allows.
Manager Adrian Owens will assess how well the strategy performs at capacity.
“It is a pause for consolidation, possibly for nine to 12 months while Adrian looks to see if, at £1bn, he can continue to add value,” Wallis says. “The product has hit quite a sweet spot, especially in Ucits III format.”
The £174m Global Rates fund, launched in November, made 8.8% this year by investing in interest rate instruments and foreign exchange pairs.
The £12m Discretionary FX fund concentrates on currencies and is up 4.3% year to date.
Wallis says: “We are seeing a situation where there is not that much consensus about the directionality or strength or timing of the recovery and when rates will rise.
“Good macro managers can make money out of this.
“Retail investors have to understand doing this is to enhance their returns. Up to now in the retail space firms have continued taking in assets.”
