GAM continued to bleed assets in the third quarter. The battered asset manager's new boss is seeking more spending cuts in a turnaround bid.
The Zurich-based asset manager lost 1.1 billion Swiss francs ($1.1 billion) in its debt fund arm, it said in a statement on Thursday. The Clients pulled money from GAM local emerging bond and star credit opportunities funds, as well as from institutional mandates.
«I see great potential across the business and I am currently focused on setting out a clear path to greater efficiencies and profitable growth,» new GAM CEO Peter Sanderson said.
More Cuts
The fund house is on track for at least 40 million francs in spending cuts by year-end, and said the bulk of its current efforts will be felt next year. GAM will further streamline itself for savings next year and in 2021, it said. The company didn't detail where it was looking to cut.
GAM is desperately seeking normalization after spending the last year winding down a scandal-hit bond fund. It swung to a net loss last year, scrapping its dividend and slashing spending in a recovery effort. The company also regularly figures in asset management industry deal speculation.
Asset Swings
Its assets – the investment arm and a private fund labelling business – fell to 135.7 billion francs at quarter-end, from 136.1 billion francs in June. The flagship investment arm's outflows were partly countered by favorable market as well as foreign exchange swings.
GAM said it recorded inflows in July, but clients pulled money in August due to so-called risk off sentiment. September «remained flat,» it said. Meanwhile at the private label arm, which is larger by funds but less lucrative, assets edged 1 percent higher.
