Zurich-based GAM Holding said it will focus on its cost structure after its managed assets contracted in the third quarter.
Like other firms, GAM group has been feeling the effects of myriad headwinds this year, and the third quarter was no exception. The firm, which has been subject to recent rumors of a sale, said that its assets under management (AuM) in the investment management unit contracted in the third quarter to 24.2 billion Swiss francs ($24.7 billion), from 27.1 billion on July 1, according to a statement Thursday.
A net outflow of 1.0 billion francs was one facet of the contraction, while market and exchange rate impacts accounted for a further 1.7 billion drop.
For the group as a whole, its AuM stood at 74.6 billion francs, down from 83.2 at the end of June, according to the statement.
Cost Cutting
«Market conditions continued to be very challenging, and clients remained cautious. Given the negative impact on our assets under management, we are focused on sound cost management and continue to align our investment strategies to meet client demand,» said CEO Peter Sanderson.
GAM said it is on target to achieve a total expense reduction for this year of «at least» 20 million francs.
«Despite arguably the most adverse environment in decades, it is gratifying to report that we are achieving very strong investment performance and making good progress made in streamlining our business,» added Chairman David Jacob.
Looking Ahead
GAM said that it expects the market environment to remain challenging and that clients will continue to remain cautious in the face of that. The firm will release its full-year results on February 23.
