GAM Investments has announced that it has closed the GAM Greensill Supply Chain Finance fund as a result of “recent market developments and resulting media coverage related to supply chain finance”.

This is in reference to Credit Suisse freezing $10 billion of assets linked to Greensill, a company backed by SoftBank and advised by former prime minister David Cameron. Supply chain financing has been criticised for some time as many regard it as a way of manipulating accounting procedures.

The firm stated that it will ensure all clients are treated fairly and is embarking on the process of returning their full investment to them in an orderly manner.

The fund is an investment grade only strategy with payment obligations from globally recognised multinational corporations. The assets are fully insured against default by third party insurers with a minimum credit rating of single-A.

According to GAM, there are no concerns regarding the valuation of the assets in the fund. The fund was available to qualified investors only and currently has a total of $842 million of assets with less than ten clients in the fund.

GAM’s associated run rate revenues from this fund are approximately CHF 1 million per annum. As of today GAM is waiving future fees on the fund.

All assets within the fund have a final maturity of 12 months or less, with a weighted average life of less than 60 days and are held and protected in Luxembourg-domiciled structures.

The closure of the Supply Chain Finance fund marks the end of GAM’s business relationship with Greensill which dates back to 2016.

Peter Sanderson, group CEO at GAM, said: “Clients are at the heart of our business at GAM and we have taken the decision to close our Supply Chain Finance fund as we believe this is in the best interests of all clients in the fund. Our portfolio is comprised of investment grade assets and we do not have any valuation concerns. As such we anticipate an orderly fund liquidation and return of client assets in the normal course.”