Swiss asset manager GAM ended the 2020 financial year deep in the red, as expected. But at least it seems to have stopped the bleeding of cash.
Asset manager GAM suffered a loss of around 380 million ($426 million) in the 2020 financial year. This is in line with expectations, as GAM had warned last summer of a massive write-down. GAM also posted an operating loss of 15 million francs. In the previous year, GAM had still achieved a narrow operating profit of 10.5 million francs.
GAM published the preliminary results due to ad hoc publicity rules of the stock exchange. It will announce the full results on February 18.
First Inflow Since 2018
The Zurich-based company added that it had its cash inflows for since early 2018. In the fourth quarter of 2020, the net inflow amounted to 0.3 billion francs. The group's assets under management totaled 122 billion francs as of December 31, 2020, including 35.9 billion in investment management and 86.1 billion in private labeling.
The write-down had to be made by GAM on the goodwill created by the acquisition of GAM by Julius Baer in 2005 and by UBS in 1999.
