Swiss asset manager GAM is expected to report another significant loss in 2023, as its new strategy will take time to take effect. Despite successfully fending off a takeover attempt by Liontrust and implementing a rescue plan with new major shareholder Newgame and French investor Xavier Niel, GAM is still facing financial challenges.
The company anticipates a net loss of CHF 105 to 110 million for the current year, compared to a loss of CHF 309.9 million in the previous year. The pre-tax loss is expected to be in the range of CHF 45 to 50 million, compared to CHF 42.8 million in 2022.
GAM’s revenue situation is not expected to improve significantly in the coming year. The average management fee margin is projected to be lower at around 45 basis points, influenced by net inflows from clients and contracts with existing and new external partners in investment management.
In addition, GAM announced a share buyback program of up to three million shares for employee compensation. This represents 1.88% of the outstanding shares and will take place from December 15 to January 17, 2024.
GAM has outlined measures aimed at achieving growth and profitability, including focusing on customers in existing core markets, investing in diversification of investment products, and expanding its wealth management services.
The company’s management, under new CEO Elmar Zumbühl, has set several goals for 2024. These include forming new partnerships in the alternative investments sector, completing the sale of the fund management services business for third parties, launching a private shares strategy in Europe, and finalizing the implementation of the Simcorp platform.
Furthermore, GAM plans to establish new distribution partnerships and transfer the services for managing GAM funds.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇭 🇬🇧 🇫🇷 🇮🇪 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Elmar Zumbühl, Xavier Niel |
| Companies | Simcorp, Liontrust, Xavier Niel, Newgame, GAM |
| Currencies | None |
| Securities | None |
