July 10, 2019 / 5:44 AM / 12 days ago

Assets managed by Swiss group GAM stabilize

ZURICH (Reuters) - Embattled Swiss financial company GAM Holding (GAMH.S) expects assets under management to have stabilized as the end of the first half, it said on Wednesday, reiterating it would finish liquidating its absolute return (ARBF) funds by the middle of July.

GAM had bled assets after being forced last year to close several funds while suspending and later sacking top money manager Tim Haywood for breaching its rules. Haywood has vowed to clear his name.

GAM shares lost three quarters of their value last year but have gained 10% this year.

It said assets under management were set to rise to around 136 billion Swiss francs ($137 billion) as of June 30 from 132.2 billion at the end of 2018, still down from 163.8 billion in June 2018.

“GAM confirms that it is on track to sell the remaining ARBF assets on or before 15 July 2019 and will update the market upon completion,” it added in a statement.

It said it expected to report a sharply lower underlying pre-tax profit of around 2 million francs in the first half as a result of lower revenues, driven by the decline in assets under management (AuM) at its investment management arm.

AuM at investment management were set to drop to 52 billion francs at end-June from 84.4 billion francs a year earlier and 56.1 billion francs at the end of last year.

AuM at GAM’s private labeling business were expected to end the first half at around 84 billion francs, versus 76.1 billion francs at the end of 2018 and 79.4 billion francs at the end of June 2018.

GAM expected to report a first-half 2019 IFRS net loss, including non-recurring and acquisition-related items, of around 14 million francs, compared to net profit of 25.4 million francs in the first half of 2018.

Reporting by Michael Shields, editing by John Revill

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