Should You Worry About a Fund Firm Failing?

We look at the risks when you invest in a fund and the firm that runs it gets into financial trouble

James Gard 11 August, 2020 | 1:44PM

House of cards

Swiss asset manager GAM issued a profit warning in June, its fourth in two years. It’s been a tricky few years for the firm: a fund manager scandal in 2018 prompted it to close nine absolute return funds with £5 billion in assets and return the money to investors. Outflows have dented the firm’s assets under management and the shares have gone from 20 Swiss francs five years ago to SFr2 today.

Investors in the company’s shares may be anxious, but should those with money in their funds be worried too? How safe is your money when you invest in a fund if the firm that runs it gets into financial trouble?

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About Author

James Gard  is content editor for Morningstar.co.uk

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