Swiss asset manager GAM said that it recorded “materially lower” outflows in Q2 2020, driven by poor investment management performance amidst a challenging market.
Investment management for GAM in Q2 2020
In Investment management, Q2 net outflows were CHF2bn versus CHF6.5bn in the previous quarter.
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Negative market and foreign exchange movements of CHF3.9bn resulted in CHF8.5bn of net outflows in H1 2020 at the unit.
This was driven by fixed income strategies, which reported net outflows of CHF5.7bn. Outflows were recorded across Systematic, Absolute return, Alternatives, equity, and multi asset strategies.
Private labelling
The Private labelling unit reported net inflows of CHF2.6bn amid negative market conditions and foreign exchange movements of CHF3bn in H1 2020.
At the end of June 2020, group AuM reached CHF119.4bn including investment management AuM of CHF35.5bn and private labelling AuM of CHF83.9bn.
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By GlobalDataGroup AuM totalled CHF 112.1bn at the end of March 2020 and CHF132.7bn at 2019-end.
Key H1 2020 group metrics
GAM reported IFRS net loss of CHF390.1m, primarily due to legacy goodwill impairment.
Underlying pre-tax loss stood at CHF2m in the first six months of 2020, compared with a profit of CHF2.1m in the previous year.
Net fee and commission income dropped to CHF123.8m from CHF171.1m.
GAM group CEO Peter Sanderson said: “Investment performance of our strategies is improving, and we have seen materially lower outflows in the second quarter compared to the first.
“Our operations have remained resilient and productivity has remained high in a Covid-19 remote working environment, and we are making good progress with our strategy.”
