Global asset manager GAM said it will hand its operating platform to an outsourcing partner, a bid to slash its spending. The battered firm signaled further restructuring measures for next month.
Swiss-based GAM is inking a long-term license with SimCorp, a Danish tech firm, to fuse its front- and middle-office systems into one, it said in a statement on Tuesday. Neither firm disclosed financial details of the measure.
The move is emblematic of the Swiss asset manager's fevered efforts to salvage its business after an 18-month crisis sparked by a whistleblowing complaint. As hundreds of jobs reportedly are at risk, the Zurich-based company has been repeatedly circled by activists as well as suitors including most recently – and most tangibly – Generali of Italy, and had three CEOs in 12 months.
Wide-Ranging Tie-Up
Specifically, SimCorp will provide GAM’s core front-office platform and investment book of record – so-called IBOR – support portfolio and order management, risk, compliance and performance management. The Swiss company will also use enterprise data management from SimCorp, and draw client communications and reporting as well.
«Transitioning to a fully integrated solution will not only enhance our clients’ experience of doing business with us, most visibly through an improved reporting experience, but will also increase operating effectiveness and efficiencies,» GAM CEO Peter Sanderson said. He flagged a strategic update for full-year results on February 20.
