GAM said it was targeting to achieve profitability in fiscal year 2026 as it reported the first half this year showed "strong progress on turnaround strategy implementation supported by significant financial commitment from anchor shareholder through fully underwritten rights issue".
AUM fell to CHF 19.0bn compared to CHF 19.3bn as at 31 December 2023, while the IFRS net loss lessened to CHF 39.1m compared to CHF 71.2m for the first half of 2023.
Underlying loss before tax was CHF 33.2m compared to CHF 22.5m for the first half of 2023 as cost optimisation initiatives across the business resulted in a 20% decrease in underlying expenses compared to first half of 2023.
GAM cited "strong investment performance with 79% of AUM beating their benchmark and 88% beating their benchmark over a three-year and five-year period respectively" with European equity strategies attracting material positive net inflows along with some net inflows across other strategies.
Overall net outflows totalled CHF 1.8bn for the first half of 2024.
The existing CHF 100 million loan facility remains in place until June 2025 with a possible maturity extension granted by Rock Investment SAS / NJJ Holding SAS if required, the asset manager said.
Among strategic changes it highlighted the enhancement of its regional presence and client coverage by hiring new heads of distribution for key markets, building out client teams, and opening new offices in Miami and Paris.
Elmar Zumbuehl, group CEO at GAM said: “We have made great progress in implementing our turnaround strategy and building the foundations for future growth and sustainable profitability. Our investment performance remains strong, and we are focused on our clients, enhancing distribution and launching new distinctive products, all to drive future positive net inflows. We are targeting to achieve profitability in fiscal year 2026."
Anthony Maarek, Managing Director of NJJ Holding SAS said: “NJJ Holding is a committed long-term strategic shareholder of GAM, providing stability and support for its growth strategy. We have fully underwritten the rights issue and we are ready to extend the loan facility if needed. We value GAM’s heritage, unique financial and operating skills in the asset management sector and believe in its ability to grow and become profitable.”
GAM further said its "priority is to achieve sustainable overall positive net inflows by rebuilding GAM’s distribution capabilities with a focus on our existing products and new product launches. The timeline for achieving these net inflows will be supported by our success in delivering our strategy, subject to market conditions. GAM targets to achieve profitability in fiscal year 2026".
