Swiss asset manager GAM has said that its full-year 2019 underlying results will be materially lower than the previous year.
In 2019, the asset manager expects to report underlying pre-tax profit, excluding non-recurring and acquisition-related items, of around CHF10m. This includes performance fees of CHF12m.
A year ago, its underlying pre-tax profit was CHF126.7m with CHF4.5m of performance fees.
According to GAM, the performance of its investment management arm will be affected this year.
Assets under management (AuM) and related revenues in the unit is said to reach CHF48bn at the end of December 2019, versus CHF56.1bn in the previous year.
AuM at the private labelling unit of GAM is expected to total around CHF84bn, as against CHF76.1bn last year.
At a group level, GAM’s AuM is expected to dip to CHF132bn from CHF132.2bn.
“GAM expects to report a full-year 2019 IFRS net result, including non-recurring and acquisition-related items, of approximately CHF0m compared to an IFRS net loss of CHF929.1m for the full-year 2018 which included a CHF883.4m goodwill impairment charge,” the asset manager stated.
GAM has been recently going through troubled times. Its problems started when an internal probe revealed breaches in the risk management and record keeping processes of star fund manager Tim Haywood.