A relatively recent asset management spin off is being rewound amid the tumultuous financial markets as GAM (UK) Ltd., a wholly owned subsidiary of Julius Baer Holding Ltd., is to acquire Augustus Asset Managers Ltd., a former part of the Baer group.

Augustus Asset Managers, a fixed-income and foreign exchange manager, was established in 2007 as a part of a management buy-out from Julius Baer. And, while the firms say that most of its mandates and funds (mutual funds and hedge funds) have performed relatively well since then, they have decided to consolidate.

“Given the new market environment, all parties consider that the franchise and clients will be better served as part of a larger organisation backed up by the global strengths of GAM and the Julius Baer Group,” they say.

Terms of the deal were not revealed, but it is expected to close at the end of April, subject to regulatory approval. AAML had assets of US$7.6 billion at the end of 2008, the majority in the Julius Baer branded Absolute Return Bond and Local Emerging Markets Bond funds, but also includes the JB Global Rates Hedge Fund amongst other hedge funds.

“Following the transaction, we believe that we can swiftly expand our customer base and create an even stronger platform for delivering attractive results for our clients across an expanding range of mandates, courtesy of the global reach of both GAM and the Julius Baer Group,” said Tim Haywood, CEO of AAML.

“Augustus is a strong addition to our group’s investment expertise at a time of increased investor interest in specialised fixed income and currency-related investments,” commented David Solo, CEO of GAM.

IE