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GAM Credit Opportunities - recent drop
Posted: 12 March 2018 19:22:11(UTC)

Joined: 12/02/2017(UTC)
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Hi all,

I have a holding of this (Instl Inc class) and the latest price change shows a daily drop of 2.67%.

I've searched Morningstar/Trustnet/GAM but can't see anything that indicates this is anything other than a (large) daily movement.

Any ideas? Inflation forecasts? 10yr US yield rise?
David JP
Posted: 12 March 2018 20:25:39(UTC)

Joined: 30/06/2013(UTC)
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I don't hold this fund, but the fall may be due to an adverse reaction to last week's Aviva results which raised the possibility of redeeming preference shares at par. The factsheet for this fund suggests some exposure to preference shares.
3 users thanked David JP for this post.
King Lodos on 12/03/2018(UTC), kWIKSAVE on 13/03/2018(UTC), dlp6666 on 13/03/2018(UTC)
King Lodos
Posted: 12 March 2018 20:33:24(UTC)

Joined: 05/01/2016(UTC)
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Sell-off in preference shares I think – someone here was hit by it on the 9th.

So I think it was Aviva acting, and spooking the rest of the market .. Chance GAM's holdings will recoup a bit in the next day or two, but I did sell down GAM Star on the recent wobble, and as it's returned the same as stocks over the years, it would be unlikely not to have similar risk (despite usual lack of volatility)
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dyfed on 13/03/2018(UTC), Slacker on 13/03/2018(UTC), kWIKSAVE on 13/03/2018(UTC), dlp6666 on 13/03/2018(UTC)
Posted: 12 March 2018 20:40:08(UTC)

Joined: 12/02/2017(UTC)
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Thanks guys.
Posted: 13 March 2018 02:58:09(UTC)

Joined: 18/02/2013(UTC)
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There's another fund with a similar recent performance that didn't go down this time (although it suffered from the Brexit vote) - Invesco Global Fin Cap:

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dlp6666 on 13/03/2018(UTC)
Posted: 13 March 2018 09:48:10(UTC)

Joined: 13/03/2018(UTC)
Posts: 1

I too have GAM credit opps. The charting in iii shows drops every July by quite a bit which alarmed me, but others don't show it.
However on 3 July 17 it took a 4.5% drop overnight which considering I bought the fund a week earlier panicked me, but held on.
Then on 25 Aug 17 the fund took a 4.6% overnight hike upwards.
I've read it's something to do with selling off and/dividends but I'm hoping someone can shine some light on this.
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