GAM tomorrow

13 December 2018 By Liam Proud Follow @liamwardproud

With shares down 80 pct this year, the Swiss asset manager could be a takeover target. Cost savings alone are worth more than its market value. Yet uncertainty may lead clients to pull money, leaving a buyer with little. Fund group valuations are especially blurry in a panic.

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GAM Holding on Dec. 13 said it would cut 10 percent of its staff and cancel 2018 dividend payments, sending its shares down around 22 percent by 1300 GMT.

The Swiss asset manager said it expected a 2018 net loss of around 925 million Swiss francs ($931 million), driven by a goodwill impairment charge of around 885 million Swiss francs.

Assets under management in GAM’s investment management division were down by 9 percent to 60.8 billion Swiss francs. It expects 2019 financial results to be materially below this year's.

GAM’s outflows follow the group’s decision to suspend a key money manager and freeze the absolute return bond fund that he managed.

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