Embattled Swiss fund manager GAM expects a wider pre-tax loss this year compared to a year ago. It continues to receive strong shareholder support from those tendering their shares for the Liontrust takeover.
GAM, currently involved in a takeover deal with UK asset manager Liontrust, provided an investor update on Monday expecting a pre-tax operating loss of approximately 23 million Swiss francs for the first half of 2023, compared to a loss of 15.4 million for the first half of 2022.
The IFRS net loss after tax for the first half of 2023 is expected to be approximately 71 million francs, driven by the operating loss and an intangible impairment charge of more than 40 million francs. This compares to an IFRS net loss of 275.2 million francs after tax for the first half of 2022.
In the first quarter, Zurich-based GAM said it booked a 63.2 million Swiss franc loss ($70.4 million) loss attributable to shareholders, widening from the 7.8 million loss in the same quarter a year ago, as finews.com reported.
Assets Under Management
Total assets under management were 68 billion Swiss francs on June 30, of which 21.9 billion were in Investment Management and 46.1 billion in Fund Management Services. At the end of December, combined AuM was 75 billion, according to the statement.
The 68 billion AuM marks a further decline from the end of the first quarter when they stood at 71.1 billion Swiss francs.
Liontrust Takeover
GAM said it continues to receive strong support from its clients, as shareholders tender shares under the offer by Liontrust Management to purchase the share capital of GAM Holding. The financing support provided by Liontrust on May 4, 2023, which would not be available if Liontrust's offer fails, will be used to fund the Group's ongoing operations.
GAM chairman David Jacob released a letter and video earlier this week urging shareholders to tender their shares in the Liontrust offer.
«Our largest shareholder, Silchester, has confirmed that they will tender their shares and our senior portfolio managers strongly support the Liontrust offer. The Liontrust offer is the only one available to our shareholders and we look forward to progressing this so that our clients, shareholders, and other stakeholders can benefit from being part of the enlarged firm. The Board continues to strongly recommend the Liontrust offer to all shareholders. Today I have written to shareholders explaining the importance of them accepting the Liontrust offer and tendering their shares,» Jacob said.
Key Dates This Year
GAM will present its full half-year results on August 3, and hold an extraordinary general meeting on August 25. On October 19 it reports third-quarter interim results.
