GAM has signed an agreement to sell the remaining debt related to its absolute return bond fund (ARBF) range, following last year's suspension of manager Tim Haywood.
In a Q1 trading update this morning (17 April), GAM said it had entered into a deal with "an entity within GFG Alliance", under which GFG has agreed to acquire all outstanding power purchase receivables notes held in accounts invested in the ARBF strategy managed by GAM International.
GFG has already refinanced one-third of the notes it had issued, which were previously held in GAM strategies.
Under the terms of the new agreement, GFG will purchase the final assets at the prices originally paid by the accountholders.
GFG Alliance is an international, integrated business model spanning mining, energy, metals and engineering, according to its website. It was set up by the British Gupta family.
The transaction is due to be completed by 15 July 2019, subject to "customary conditions".
A final disposal will take place "as soon as possible", subject to the success of the deal, which follows a distribution due to complete over the next two weeks, which will see as much as 95% of GAM Multibond and GAM Star funds, plus up to 84% of Cayman-domiciled assets returned to clients.
GAM said while it remains well positioned to capture client demand, given its "differentiated and specialised product offering", and is on track for its CHF40m (£30m) cost saving this year, it is cognisant H1 19 financial performance will be "materially below" the first half of 2018, given the Haywood-related fallout.
Haywood was suspended following whistleblowing claims of issues relating to his risk management procedures and record keeping, which has led to a period of outflows for the firm.