The Swiss asset manager hiked its assets, though not due to inflows of fresh money. CEO Peter Sanderson is looking to major spending cuts to help revive the company.
The good news is that crisis-roiled Swiss asset manager GAM lifted its assets under management to 120.4 billion Swiss francs ($132.6 billion) at the end of September, from 119.4 billion francs mid-year.
The hike comes in spite of further outflows, GAM said in a statement on Wednesday: the firm's investment management lost 2.4 billion francs, though it benefited from favorable financial market and currency swings of 800 million francs.
Dramatic Drop
The main driver behind GAM's asset rise was its private label business, where funds rose to 86.5 billion francs from 83.9 billion francs in June. This was underpinned by 400 million francs in net inflows, while market movements pitched in another 2.2 billion francs.
The year-on-year comparison of GAM is dramatic: assets have tumbled more than 11 percent since last year, when they stood at 136.1 billion francs mid-year and at 135.7 billion francs in September. Outflows are also accelerating from this time last year, when they stood at 400 million francs.
Cost Cuts On Track
GAM CEO Peter Sanderson is attempting a recovery rooted largely in spending cuts. The company said a program to slash costs, including bonuses, by at least 65 million francs this year is on track. It flagged a «further simplification of the business» to save money and become more efficient next year and in 2022.
The asset manager said it will make sustainable investments a key part of its growth push, and appoint a new head for the strategy shortly. GAM recently poached an institutional specialist, Jill Barber, from Jupiter and hired Blackrock veteran Jeremy Robertson for distribution.
