GAM Holding AG

Response to media speculation

GAM Holding AG / GAM Holding AG: Response to media speculation . Processed and transmitted by West Corporation. The issuer is solely responsible for the content of this announcement.

25 September 2018

Press Release

GAM Holding AG: Response to media speculation

In response to recent media speculation, GAM can confirm that its internal investigation into the conduct of Tim Haywood, investment director of the ARBF funds, commenced following concerns raised by an internal whistle-blower. In line with its established processes, GAM took the concerns very seriously whilst also ensuring that it protected the existence and identity of the whistle-blower. GAM fully intends to continue to provide all appropriate protections to the whistle-blower. In November 2017, an internal investigation, supported by independent external counsel, was launched. In March 2018, the whistle-blower expanded on the initial concerns and contacted the FCA whilst keeping the company informed.

The internal investigation evolved as more facts and circumstances were uncovered and identified a number of potential misconduct issues, the cumulative effect of which led to the decision to suspend Mr Haywood. As previously stated, no other employees are being investigated in relation to these matters and no evidence was found to indicate that such an investigation regarding other employees was required. The internal disciplinary process in respect of the suspended investment director is on-going.

The liquidation of the ARBF funds which ensures that all investors are treated equally and fairly is continuing, with between 60% and 87% of the funds returned to date. The second liquidation payments will start in the week of 24 September 2018 with further fund assets being liquidated to cash and returned to investors over the following months, dependent on market conditions. No material client detriment has been identified to date and we continue to keep this under review.

As previously stated, the potential conduct issues identified related to failure to conduct or evidence sufficient due diligence and failure to make accessible internal records of documents in certain instances. Additionally, the investigation concluded that Mr Haywood may have breached the company's signatory policy and may have used his personal email for work purposes. He also breached the company's gifts and entertainment policy.