The Swiss asset manager said it is losing more than $24 billion in its private-labeling business. A sizable client is moving his assets into a strategic partnership with a rival.
Zurich-based GAM said a client with 21.5 billion Swiss francs ($24.2 billion) will withdraw their assets later this year in favor of a strategic partnership with a rival, in a statement on Tuesday. The client had produced revenue of roughly 5 million francs per year.
«I am pleased that the client has said that they will remain as a positive client reference even as they complete an internal strategic change,» GAM unit head Martin Jufer said. GAM, which reports full-year results on February 18, said its private label unit has a good pipeline.
GAM said earlier this month it will post a net loss for 2020, but that it has stanched the bleeding in its main investment management unit. That unit carries far higher margin than its private label unit, which sells unbranded products to other firms to sell on.
