Gam’s investment management arm has failed to keep a lid on redemptions over the first half of the year, as clients withdrew another CHF 2.2bn (£1.7bn).
The Zurich-based fund group reported its assets under management totalled CHF 34.8bn as of 30 June 2021, a CHF 1.1bn drop, compared to its total AUM as of 31 December 2020 (CHF 35.9bn).
The company stated that outflows recorded for the period were only “partly offset” by net positive foreign exchange movements and market movements of CHF 1.9bn in the first half.
Gam has struggled to retain client assets in its investment management business. The Swiss manager was pummelled by CHF 8.5bn worth of redemptions over H1 2020 during the worst of the Covid crisis, which helped push AUM down by over a quarter.
While things looked brighter in Q4 2020, with the group attracting net inflows for the first quarter since the start of 2018, this has proved to be short lived.
See also: Gam braces for £315m hit as inflows return to its investment business
Fixed income strategies shed cash
Despite the investment management division’s overall outflows, several equity strategies saw net positive inflows in the first half of 2021, including Gam Star Disruptive Growth, Gam Start European Equity and Gam Luxury Brands Equity funds.
In total net inflows into its equity funds amounted to CHF 100m after factoring in redemptions from its Gam Emerging Markets Equity and Gam Star Japan Leaders funds.
Gam’s fixed income strategies saw net client outflows of CHF 1.2bn. Most of these outflows stemmed from its largest strategies, including the Gam Local Emerging Bond fund, and the Gam Star Credit Opportunities fund.
However the firm did report inflows into its recently launched Gam Sustainable Local Emerging Bond fund and Gam Star Cat Bond fund.
Multi asset strategies reported a net outflow of CHF 300m and were primarily driven by a redemption from an institutional client. Meanwhile, alternatives recorded net outflows of CHF 200m, primarily reflecting outflows from the Gam Select fund.
Absolute return flows remained flat with inflows into the Gam Star EM Rates and Gam Star Alpha Technology funds being offset by redemptions from the Gam Talentum Enhanced Europe Long/Short and the Gam Star Lux Merger Arbitrage funds.
Group wide losses narrow
Gam’s group assets under management increased to CHF 126bn as of 30 June 2021, compared with CHF 122bn as of 31 December 2020.
Its underlying pre-tax profit was CHF 800m in the first half of 2021 compared with underlying losses of CHF 2m in the first half of 2020. However, as anticipated, it revealed an IFRS net loss of CHF 2.7m though this was down substantially from the CHF 390.1m net loss recorded in the same period last year.
“We are committed to sustainable growth at Gam and have invested significantly in talent and technology as well as evolving our product offering to support this,” said Peter Sanderson (pictured), group CEO.
“We are seeing an encouraging level of client interest reflecting our strong investment performance and although we saw outflows in investment management overall, we saw net inflows across our equity platform and have achieved an increasingly diversified pipeline of client activity in the first half with demand across our core, thematic, liquid alternative and sustainable strategies.”
In July Gam revealed its private clients and charities business would be rebranded as Gam Wealth Management, with the firm looking to grow its presence in Singapore and extend its reach in Switzerland and the UK. Current Private Labelling boss Martin Jufer will lead the newly overhauled division.
Gam will release its Q3 results in October.
See also: Gam forecasts £2.4m loss as it rebrands private client business
