Robinski went on to say that “GAM is the least cost effective business amongst its peers” delivering an operating margin of 24%, half of the average 45%.
RBR was also critical of the company’s CEO pay, which it found “totally detached from any measure of performance,” and its inability to grow funds under management relative to its competitors.
“GAM is losing managed funds at an alarming rate,” said Robinski.
“Between 2011 and 2016 Azimut grew its funds under management by 162%, Schroders by 102%, Jupiter by 78%. GAM was the worst performer amongst its peers.”
In response to RBR’s aggressive tactic, GAM released the following statement:
“GAM management is steadfastly implementing concrete growth initiatives, while making the company as efficient as possible.
“GAM’s proposed board of directors has extensive experience in running publicly listed, global multinational businesses and managing turnaround situations, deep knowledge and understanding of the asset management and broader financial industry, as well as the independence to act in the interests of all shareholders.”
