The deal, which remains subject to regulatory approvals, will see all 14 GAM staff in Cayman transfer to JTC. Completion is expected in late 2015.
In August JTC finalised its takeover of the Channel Islands and South African fund administration businesses of Kleinwort Benson, and last month it bought the Luxembourg-based Signes, which provides accounting, administration and tax compliance services to institutional investors.
JTC Group chief executive and chairman Nigel Le Quesne, said the latest deal further strengthens and deepens the firm’s offering to institutional clients.
“To be a key player in the fund administration sector, you need to have a solid Cayman platform to operate from,” Le Quesne said.
“This is particularly relevant in the establishment of new funds as Cayman is leading financial centre of choice in the region after onshore US.”
“The GAM offering is something of real substance to be able to continue to sell our services into the market and gives us additional experience in the administration of asset classes such as hedge,” he said.
Core focus
GAM said the disposal of its Cayman business reflected its intention to focus on its role as general contractor for private label solutions and the provision of management company services for funds domiciled in Europe.
Private label funds are tailor-made investment funds set up in cooperation with external partners. They provide an investment manager with the opportunity to create their own customized fund and, if they wish, use their own brand.
It is also in line with GAM’s announcement, made at its half-year results presentation in August, to focus activities on its core strengths within investment management and the private labelling business.
Martin Jufer, region head, continental Europe at GAM, said: “In conducting the sale process, we wanted to ensure the highest possible continuity for clients and, after carefully evaluating a range of potential buyers, we are delighted to have completed the sale process with JTC.”
JTC has over 450 staff operating from 18 jurisdictions around the globe and holds more than $60bn of assets under administration. The company was founded in Jersey over 25 years ago and offers a full range of institutional and private client services to clients based in 102 countries.
