- Zürcher Kantonalbank to acquire four Swiss precious metals funds from GAM with assets under management of CHF 1.8 billion.
- GAM’s money market funds domiciled in Luxembourg with assets under management of approximately CHF 0.4 billion will also be acquired.
- With this transaction, Zürcher Kantonalbank is further expanding its leading position in the precious metals investment business.
Zürcher Kantonalbank to acquire precious metals ETF and money market business from GAM
Press release from 30 July 2019
Zurich, 30 July 2019 – Zürcher Kantonalbank and GAM Holding AG today announced a transaction between their asset management units. Zürcher Kantonalbank will take over the investment management and marketing of four Swiss precious metals funds with assets under management of CHF 1.8 billion from GAM. As part of this transaction, GAM’s money market funds with assets under management of CHF 0.4 billion will also be transferred. The purchase price amounts to CHF 14 million, which corresponds to around 0.6 % of the acquired assets. No GAM employees will be transferring to Zürcher Kantonalbank as a result of the transaction. The transaction is expected to be completed in the third quarter of 2019, subject to the approval of the competent authorities.
Upon completion of the transaction, Zürcher Kantonalbank will become the investment manager for these investment funds and will be responsible for all related marketing activities. The funds’ investment objectives, investment universe and investment approach will remain unchanged. GAM will continue to act as the fund management company through its private labelling unit. State Street Bank and Bank Julius Baer will remain the custodian banks.
David Jacob, CEO of GAM, says: "We look forward to the expanded collaboration with Zürcher Kantonalbank, the leading provider of precious metals and money market funds. Investors already invested in these funds can continue to expect a highly professional management of these products in the future."
Iwan Deplazes, Head of Swiss canto Invest by Zürcher Kantonalbank, says: "This acquisition is a very good strategic fit with our portfolio and will enable us to further strengthen our position in areas in which we are already very well positioned. Following the transaction, we will have a market share of over 60% in the Swiss precious metals ETF business. The transaction will already positively impact Zürcher Kantonalbank's results in its first year."
Zürcher Kantonalbank is a leading universal bank in the Zurich economic area with Swiss roots and international reach. It is an independent, incorporated public-law institution of the Canton of Zurich and has received top ratings from the rating agencies Standard & Poor's, Moody's and Fitch (AAA/Aja). With more than 5,000 employees, Zürcher Kantonalbank offers its clients a comprehensive range of products and services. The bank's core activities include financing businesses, asset and wealth management, trading, capital market transactions, deposits, payment transactions and the card business. Zürcher Kantonalbank provides clients and distribution partners with a comprehensive range of investment and retirement provision products and services.
GAM Private Labelling
GAM's Private Labelling (PLF) division includes management company and other support services for third parties. GAM is responsible for setting up and managing funds (in full or in part) so that private labelling partners can focus on their core competencies: asset management and fund distribution. GAM develops and manages tailor-made private label funds for banks, insurance companies, independent asset managers and qualified investors. The team manages over 215 funds for various PLF partners and managed client assets totalling CHF 84.0 billion as at 30 June 2019.