Category Investments

Funds announces new Discretionary Funds Management Agreement with Sanlam UK

06 March 2019 VAM Funds

- The new development will move away from VAM’s current fund of funds model to a directly managed approach
- The move follows a successful four-year relationship with Close Brothers, which saw VAM’s three risk-managed UCITs funds grow assets under management to $200m

VAM Funds, the UCITS Luxembourg fund management group, through VAM Global Management Company S.A. ("VAM"), has announced that it will move certain Discretionary Funds Management ("DFM") mandates in VAM Managed Funds (Lux) from Close Asset Management Limited ("Close Brothers Asset Management") to Sanlam Private Investments (UK) limited ("Sanlam UK").

The move is part of a strategic shift from VAM Managed Funds (Lux)’s current fund of funds model into a new directly managed approach that promises to maintain growth but bring efficiencies at a time when asset managers are seeking to offer better value to customers.

VAM appointed Close Brothers Asset Management in July 2015 as part of a strategic agreement to meet the needs of international advisers and the increasing uptake of discretionary fund management services. The successful four-year relationship brought three new UCITS multi-asset funds to the VAM proposition, with assets under management growing to $200 million, amidst continued demand from IFAs for a DFM proposition managed by experts in fund selection.

Under the new agreement, VAM’s multi-asset funds will be directly managed by Sanlam UK, with the opportunity for portfolio managers to invest directly in the securities markets, rather than buying positions in other funds with fund of funds model. This will be effective from 1st April 2019, subject to regulatory approval.

Brendan Adams, Managing Director, VAM Global Management Company, said:

“I’m delighted to announce that VAM has selected Sanlam UK to manage its discretionary fund proposition. This was an extensive search amongst the best of breed managers, but Sanlam demonstrated clearly strong historical investment performance, as well as support for our worldwide client and investor base and our need for a directly invested approach.

“As with the wider asset management industry, DFMs are facing the challenge of driving greater value for money but delivering the same levels of service to meet their fiduciary duties to investors. With this new agreement, we expect to continue to offer our investors the strong performance and transparency VAM is known for, and at a competitive cost.”

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