Assessment of Value

GAM Investments’ purpose is to protect and enhance our clients’ financial future. By attracting and empowering the brightest minds to think beyond the obvious, we strive to provide investment leadership, innovation and a positive impact on society and the environment.

By living our purpose every day, we believe that we can realise our vision of building the most respected specialist active investment manager and trusted solutions and services platform in the world.

For this reason, the Board of GAM Sterling Management Limited, the Authorised Corporate Director of GAM Funds, (the Board), takes seriously the UK regulator’s, the Financial Conduct Authority (FCA), requirement for asset managers to produce a ‘statement of value’ for each fund offered to investors in the UK. This report assesses seven key aspects of value, or pillars, on at least an annual basis, considering:

• Quality of service – an assessment of the range and quality of services being provided to investors.
• Performance – an assessment of whether a fund delivered on its stated performance objectives within an appropriate timescale, taking benchmarks and relevant peer group / sector performance into consideration.
• AFM (authorised fund manager) costs – consideration of whether the fees paid by investors are reasonable in comparison to the cost of the service the fund is receiving.
• Economies of scale – the extent to which an asset manager is able to pass on economies of scale to investors and how they have been achieved.
• Comparable market rates – a comparison of the charges applied by the fund in relation to the wider marketplace (i.e. an appropriate peer group / sector).
• Comparable services – an analysis of how charges compare against other comparable services provided by the asset manager in relation to mandates of a similar size and with comparable investment objectives.
• Classes of units – a review of existing share classes to ensure investors are being offered the most suitable share class in terms of value.

Given the increasing importance of sustainability and responsible investment for investors, we have chosen to also include an eighth pillar in our report for this year to outline how the wider GAM Group (GAM Investments) is developing its corporate sustainability proposition and these factors will be integrated within the funds’ investment processes over time.

• Sustainability – an assessment of the sustainable initiatives provided by GAM Investments.