An institutional client will withdraw billions of Swiss francs from the struggling Swiss investment firm in the coming year, impacting revenues, GAM warns.
GAM Investment has been informed by an institutional client it will move part of its GAM Fund Management Services business in-house starting the second quarter of 2023, according to a statement Wednesday from the asset manager.
The client will transfer around 10.5 billion Swiss francs ($11.2 billion) in fund assets to its own fund management company from April 2023, while leaving around 1 billion francs with GAM Fund Management Services. The assets generated around 6 million francs of annual revenue for GAM.
Brave Face
Perhaps in trying to put on a brave face, GAM said the funds represented less than 3 percent of the firm's net fee and commission income for 2021, it said.
«We are proud to have helped our client grow their business over a long period and look forward to continuing working with them as a trusted partner. We remain focused on revenue growth using the full suite of GAM capabilities in response to client demand for an enhanced offering,» said Sean O’Driscoll, head of GAM Fund Management Services.
Hemingway
It calls to mind a passage from Ernest Hemingway's novel «The Sun Also Rises,» in which one of the characters is asked how he went bankrupt replied,
«Two ways. Gradually and then suddenly.»
