Swiss manager’s “disappointing” earnings

Swiss-based asset manager GAM’s underlying profits before tax fell by 39% last year compared to 2015, due to plummeting performance fees.

Earnings from performance fees stood at 3 million Swiss francs (€2.8 million) in 2016 – a huge drop from 82.8 million Swiss francs the year before.

The firm also saw net outflows of 10.7 billion Swiss francs due to “heightened risk aversion among investors amid political and economic uncertainty”.

GAM’s diluted underlying earnings per share dropped from 0.98 Swiss francs to 0.60 Swiss francs, driven by the decline in underlying net profit.

The board of directors proposed a share buyback after a share buyback programme last year to an extent mitigated the decline in earnings per share.

“Our 2016 earnings were disappointing on two fronts: we recorded net outflows for the year and realised very low performance fees,” said Alexander S. Friedman, group CEO of GAM.

Johannes A. de Gier is to retire from GAM’s board. The board proposed to re-elect Hugh Scott-Barrett and make him chairman.

GAM has also terminated its agreement to use Julius Baer trademarks to market investment funds.

©2017 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST