Swiss money manager GAM has said that its assets under management (AuM) reached CHF146.1bn at the end of September 2018, a decrease of 11% from CHF163.8bn as at 30 June 2018. GAM AuM at the group’s investment management arm totalled CHF66.8bn at the end of September 2018, a 21% slump from CHF84.4bn as of 30 June 2018.
The firm said that CHF10.8bn of the decline was triggered by the unconstrained/absolute return bond (ARBF) strategies.
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Earlier this year, GAM secured the approval to liquidate the ARBF range that was managed by suspended investment director Tim Haywood.
The suspension of Haywood came after an internal probe, which revealed breaches in his risk management and record keeping processes.
Net outflows of CHF5.3bn from non-ARBF strategies as well as negative foreign exchange and market movements of CHF1.5bn also led to the overall decline in AuM at the investment management unit, the firm said.
AuM in the group’s private labelling division reached CHF79.3bn, almost unchanged from 30 June 2018. The unit reported net inflows of CHF0.4bn.
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By GlobalDataGAM Holding CEO Alexander Friedman said: “The consequences of the suspension of an ARBF investment director marked a clear setback for GAM. We are taking immediate and near-term measures to support GAM’s profitability.
“We have a stable and diversified business that we continue to build upon and we remain fully focused on delivering the investment returns expected by our clients.”
In an update on the ARBF liquidation process, GAM said that 82% to 91% of the Luxembourg and Irish-domiciled UCITS funds, along with 66% to 72% of the assets in the Cayman and Australian feeder funds have been returned to investors.
The firm intends to make more disbursements in the final quarter of this year.
