The battered Swiss asset manager is suffering market ructions, but CEO Peter Sanderson is seeking to dissuade potential acquirers – and is even mulling new hires.
GAM's start to 2020 was tumultuous, the Zurich-based asset manager wants to cut spending by 65 million Swiss francs ($68 million) by year-end, in large part with cuts to its 869-employee workforce. CEO Peter Sanderson doesn't want to sell part or all of GAM, he said in an interview with Swiss outlet «Finanz und Wirtschaft» (behind paywall, in German) on Wednesday.
«We looked at these options [a sale or involvement of a major investor], but currently believe that the strategy we have laid out is the best one to generate value,» Sanderson said. Major shareholders including Silchester, a U.K. fund house which has held more than 15 percent of GAM since 2014, have expressed their backing, he noted. «Beyond that, of course, it is our duty to evaluate any serious proposals which can generate long-term value, together with our shareholders.»
CEO Flags New Hires
Sale talk is a recurring theme for GAM following a scandal around an absolute return bond fund in 2018. The asset manager has at times denied M&A speculation, while quietly exploring its options behind the scenes with the help of Citigroup investment bankers. Italy's Generali, British rival Schroders, U.S. fund firm Columbia Threadneedle, and Swiss bank UBS have variously emerged as potential suitors for parts of all of GAM. Sanderson
Sanderson told the outlet he is holding fast to his April plan to cut roughly 20 percent of jobs, across GAM's business. He also flagged «targeted» hiring in areas like a private labeling fund arm. The CEO aims for a pre-tax profit of at least 100 million francs in 2023. GAM reported a loss of 3.5 million francs last year, which stands in stark contrast to the loss of 916.8 million francs in the catastrophic year of 2018.
