Zurich-headquartered GAM Investments has announced a strategic alliance with Hong Kong-based alternative investment firm Sun Hung Kai & Co., effective 1 August.
According to a joint statement from both firms, the alliance aims to drive growth and enhance client coverage and capabilities across the Greater China region.
GAM group CEO Elmar Zumbuehl said: “We are delighted to partner with SHK & Co, a market-leading firm established in 1969, known for its local market presence, alternative investing expertise and wealth management solutions.”
He added that this alliance reinforces the Swiss firm’s commitment to the region.
Other western asset managers in recent years have pulled back from Greater China following a protracted property market decline and growing geopolitical tensions.
Under the alliance, Sun Hung Kai Capital Partners – the licensed subsidiary of SHK & Co. – will distribute and service GAM’s funds across the region, which includes Hong Kong, mainland China, Taiwan and Macau.
Tony Edwards, Deputy CEO of SHK & Co said: “This strategic alliance combines our complementary strengths and resources, significantly improving our client service and investment solution capabilities.”
“Together, we are well-positioned to provide exceptional offerings that cater to the evolving needs of our clients in the region.”
He added that he hopes to explore more business collaborations with GAM in the years to come, particularly in the alternatives space.
GAM and SHK & Co also plan to collaborate to co-develop alternative portfolio product solutions for clients both locally and globally.
At a press conference announcing the partnership, Rossen Djounov, GAM’s global head of client solutions hinted that some initial funds they expect to see some demand for, based on existing popularity, would be GAM’s traditional fixed income funds.
He also highlighted GAM’s catastrophe bond strategy, which is favoured by some clients for its low correlation to markets compared to traditional bond funds.
