GAM, a Zurich-based asset manager, has had a difficult first half and the CEO doesn't expect things to get better soon.
The turbulence on the financial market, which dogged banking institutes this year, also have hurt GAM. The company had 5.6 billion Swiss francs less in investment management business at the end of June compared with January 1, GAM reported today.
Assets under management at the group declined 5 percent to 113.5 billion francs. Profit dropped to 53 million francs, a third less than in the same period in 2015. GAM had alerted investors about the decline in profit in mid-June.
«Disappointing»
Alexander S. Friedman, CEO at GAM, called the results «disappointing» and said that the company couldn't rely on a «quick improvement in market conditions».
«We expect the market environment will continue to be difficult for the remainder of 2016,» Friedman said in the statement. Still, GAM will continue to invest to better position the business, he added.
Financial Targets Maintained
GAM maintained its financial targets of «of increasing diluted underlying earnings per share in excess of 10 percent on an annualised basis and achieving an operating margin of 35 to 40 percent over the five to eight-year business cycle».
The company also wants to retain its policy of «progressive, predictable and sustainable dividends».
