Swiss asset manager GAM has reported an IFRS net loss of CHF13.6m for the first half of 2019, versus a profit of CHF25.4m a year ago.

The group’s underlying net loss for the half-year ended 30 June 2019 was CHF1.1m, compared to a profit of CHF71.7m in the first half of 2018.

Net fee and commission income plunged 41% to CHF171.1m from CHF287.7m.

The group’s assets under management (AuM) totalled CHF136.1bn at the end of June 2019, down from CHF163.8bn a year ago.

AuM in the group’s investment management arm slumped 38% year-on-year to CHF52.1bn.

Net outflows at the division were CHF7.6bn during the period.

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AuM of CHF84bn in the group’s private labelling unit was 6% higher than a year ago.

The division reported net inflows of CHF2.4bn.

GAM’s woes started with the dismissal of its fund manager Tim Haywood after revelations of breaches in his risk management and record-keeping processes.

Soon after, the absolute return bond fund (ABRF) range managed by Haywood was liquidated.

Meanwhile, GAM appointed Peter Sanderson as its new group CEO, replacing David Jacob who has been serving on an interim basis since last November.

Jacob said: “With the final ARBF payments being made to our clients today, we intend to put this issue behind us and are now fully focused on the future growth of the business. I am pleased that we have started to see a positive flow trajectory in investment management over the last couple of months.

“We are well on track with the implementation of our restructuring programme and will continue to find ways to simplify our business to achieve additional efficiency gains.”

GAM’s new CEO

Peter Sanderson will assume the new role of CEO in September this year.

Jacob will now replace chairman Hugh Scott-Barrett, effective from October 2019.

Scott-Barrett will retain a board seat until GAM’s next annual general meeting next year.

Previously, Sanderson worked at BlackRock. He held various positions at the firm including the head of financial services consulting in EMEA, co-head of multi-asset investment solutions in EMEA, and COO for BlackRock Solutions in EMEA.

He also had stints at Mondrian Investment Partners and KPMG.