ZURICH, Aug 2 (Reuters) - GAM Holding AG said it had halted dealing in some bond funds after an investor rush out of the products in the wake of its decision to suspend the director in charge.
“GAM Investments announced today that all subscriptions and redemptions in its unconstrained/absolute return bond funds (ARBF) have been suspended as of 31 July 2018 by the relevant fund boards of directors following high level of redemptions,” the Swiss group said in a statement on Thursday.
“The fund boards are considering all future steps, including fund liquidations, to maximise value and liquidity for clients. The impacted funds represented 7.3 billion Swiss francs in assets under management as at 31 July 2018.”
Although the funds were liquid enough to serve redemption requests, “such actions would lead to a disproportional shift in their portfolio composition, which could compromise the interests of remaining investors”, it added.
Reporting by Michael Shields