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February 18, 2022

GAM annual IFRS net loss narrows to CHF23.3m; AuM drops to CHF100bn

Swiss money manager GAM Holding has posted IFRS net loss of CHF23.3m for the year 2021, down from CHF388.4m a year ago.

The loss was mainly attributed to the underlying net loss after tax of CHF7.5m and non-core items of CHF24m, which covered a CHF11.3m fine by the FCA.

The group’s assets under management (AuM) as at 31 December 2021 stood at CHF100bn versus CHF122bn at the end of 2020.

Underlying loss before tax stood at CHF9.6m against underlying loss of CHF14.9m in the year-ago period.

Net fee and commission income fell by 2.5% to CHF227.3m from CHF 233.2m. The underlying operating margin stood at negative 3.2%, compared with negative 4.7% in 2020.

Investment Management unit’s AuM fell to CHF31.9 from CHF 35.9bn at the end of fiscal year 2020.

The unit suffered net client outflows of CHF4.4bn in 2021, while fund management services recorded net client outflows of CHF20.5bn, primarily due to the exit of a large client.

In the wealth management unit, AuM stood at CHF2.9bn as of 31 December 2021,

Last year, GAM announced an increased focus on the wealth management division, which serves clients majorly located in the UK, Switzerland and Asia.

Revised financial targets

GAM announced revised financial targets for 2024 following the dip in AuM. The firm said it now aims for an underlying pre-tax profit of at least CHF50m next year, with underlying operating margin between 20% and 30% and a compensation ratio of 45-50%.

GAM Group CEO Peter Sanderson said: “2021 was a pivotal year of strategic progress for GAM, which has put us in a good position to focus on delivering value to our stakeholders through bringing GAM to growth.

“In the new post-pandemic paradigm, we are seeing an increased appetite for actively managed alternative, sustainable and high-conviction strategies and solutions from our existing and potential clients, which plays to our strengths as a firm.”

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