It’s not just the general public with an eye on costs these days, as Gam Investments confirmed in its Q3 results that the Swiss asset manager is on course to trim at least CHF 20m (£17.7m) in total expenses for the full year 2022 compared with last year.
The third quarter results statement from Gam is very much akin to those of its peers and rivals, with assets under management down 10.3% at CHF 74.6bn (£66.3bn) as of 30 September, from CHF 83.2bn (£73.9bn) at the end of June.
Since the start of the year, the Zurich-headquartered firm’s total AUM has plunged 25% from CHF 99.9bn (£88.7bn).
Gam’s investment management arm saw AUM fall to CHF 24.2bn (£21.5bn) by the end of the third quarter, having sat at CHF 27.2bn (£24.1bn) on 30 June. Net client outflows of CHF 1bn (£0.89bn) combined with volatile market and foreign exchange movements to chip away at the Swiss firm’s assets under management.
In addition, seven strategies were in liquidation during the quarter:
- – Gam Total Return Bond
- – Gam Global High Yield
- – Gam Multibond Dollar Bond
- – Gam Inflation Linked Bond
- – Gam Multibond Asian Income Bond
- – Gam Multibond Diversified Income Bond
- – Gam Multistock Health Innovation Equity
The confluence of these factors led to the fall of CHF 2.9bn (£2.6bn) in assets managed by the investment management side of the business.
Fixed income strategies, which account for the lion’s share of Gam’s AUM, experienced the largest sell-off, as clients pulled CHF 0.5bn (£0.4bn). No asset class attracted a net positive injection of client money during the quarter.
The fund management arm of the business fared little better, as AUM finished the period at CHF 50.4bn (£44.8bn). This was more than 10% lower than the £56.1bn reported on 30 June and more than 25% below the £68bn on the books at the start of 2022. During the third quarter, clients pulled CFH 3.1bn (£2.8bn), while market and FX performance accounted for CHF 2.6bn (£2.3bn) of the losses.
David Jacob, chairman of the group, was nonetheless pleased with what he saw as “continuing strength in [the group’s] investment performance”.
He added: “Nevertheless, we are constantly reviewing the progress of the firm, and we are committed to ensuring that our strategy is appropriate and in the interests of all our stakeholders.”
As of 1300 CEST on Thursday, Gam shares were up more than 2.2% since trading opened this morning, hitting CHF 0.79 (70p). However, the share price is down more than 53% over the last year, and a staggering 95% over the last five years.
Peter Sanderson (pictured), CEO of Gam, said: “The market continued to be very challenging during the third quarter, and clients have remained cautious. Given the negative impact on our assets under management, we are robustly managing our costs and continuing to align our investment strategies to meet client needs. Supporting our clients has never been more important and I am pleased that we continue to deliver strong investment performance, bold thought leadership and excellent client service.”
