GAM next month launches a tightly focused US equity fund to be managed by James Abate, writes James ...
GAM next month launches a tightly focused US equity fund to be managed by James Abate, writes James Phillipps.
The GAM Star American Focus Fund is set to come out in mid-September following a subscription period and pending approval of its prospectus from the Central Bank of Ireland. The fund will be a Dublin-based Ucits and fully Isa compliant.
GAM is applying for a distributor's licence and the fund will be regulated and recognised in the UK, according to Martin Harrison, director of mutual funds at GAM.
The fund will invest in between 35-50 stocks, with a disciplined value bias. Abate, director of North American equities at GAM, said he will run the fund in his customary manner, using a barbell strategy investing in restructuring and turnaround plays at one end and companies plagued by negative sentiment at the other.
Abate added the fund will mirror the SEC US retail fund and institutional money that he is already running in the US, along with the long/short GAM American Focus Hedge Fund, which was launched in May this year.
The maximum initial charge for the long only fund will be 5%, with discounts offered for volume sales and the possibility of a launch discount is still being considered. The annual management charge will be 1.5% and basic commission will be 3%.
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