Embattled Swiss asset manager GAM has reported a slight growth in assets under management (AuM), driven by net inflows of CHF0.4bn in its private labelling business. However, this was offset by net outflows in the investment management business.

Q3 Highlights  

The firm’s AuM at the end of September 2020 totalled CHF120.4bn ($132.8bn), versus CHF119.4bn at the end of June 2020.

In investment management, AuM dropped to CHF33.9bn from CHF35.5bn over the period.

The business recorded net outflows of CHF2.4bn in all asset classes, including specialist fixed income, multi asset, equity, systematic, and alternatives.

The exception was absolute return, which remained stable.

In private labelling, AuM increased to CHF86.5bn from CHF83.9bn.

In terms of performance, 22% of AuM in funds as of 30 September 2020 outperformed their benchmark over three years while 69% did so over five years.

This compares to 34% and 39% at the end of June 2020.

The comparable figures at the end of March 2020 are 14% and 17%, respectively.

Sustainability goal

The firm announced that it will roll out new offerings to further its sustainability agenda that is a major part of its growth plan.

It will soon appoint the global head of Sustainable and Impact Investment, who will be in charge of its sustainable investment strategy.

Appointment

The firm has appointed Jill Barber as the global head of Institutional Solutions.

Barber will assume the new role on 2nd of next month and work alongside the global head of distribution Jeremy Roberts to spearhead sales and distribution.

Efficiency measures and technology enhancement

The firm said that its move to make at least CHF65m in cost cuts by the end of 2020 is on track.

It has also highlighted additional opportunities for efficiency gains in FY 2021 and FY 2022.

Additionally, GAM unveiled that SimCorp implementation is on track with a significant part of equity capabilities to transition during the final quarter of this year.

GAM group CEO Peter Sanderson said: “The investment performance of our strategies continues to deliver for clients and we are seeing high levels of positive client interaction with a strong focus on growth opportunities.

“Our strategy remains on track, and we have in place strong leadership across the firm to deliver on the opportunity for GAM to grow.”

Background

GAM came under the scanner after an internal probe revealed breaches in the risk management and record-keeping processes of its star fund manager Tim Haywood.

Haywood was eventually sacked, while the absolute return bond fund (ABRF) range managed by him was liquidated.