Swiss asset manager GAM's CEO plans to take the company out of the red with new investment products, including some in decarbonization and social housing.
GAM intends to return to profitability by growing its product range as well as investing in technology and its employees, CEO Peter Sanderson said at a web conference Wednesday on the Zurich-based asset manager’s results.
Sanderson gave sustainable investing, investments geared to specific themes and alternative investments as examples of what he meant.
Social Housing
He said GAM was planning a number of new products in the area of sustainability and that the existing portfolio would be restructured in line with the new strategy.
Sanderson said the theme-based funds would be in sectors such as consumer goods, luxury goods, or technology but that sustainability, decarbonization and social housing would also be included. He added that he expected investors to increase the proportion of their capital allocated to alternative investments.
Singapore Office
Sanderson said he was convinced it would be possible to increase cash inflow through strong performance. The good numbers in recent months had created a firm basis for this.
He added that he expected Wealth Management would bring growth too.
GAM sees Asia as a particular focus for its Wealth Management division. The opening of a new office in Singapore had boosted its presence in the region, the CEO said. However, GAM would also expand its business with existing customers. For example, tailored solutions for family offices or personnel changed in sales should help with this, Sanderson said.
All Portfolios on New Platform by End-2021
He said that top management was continuing to work on reducing costs to make GAM fit for the future. «In the first half of 2021, we cut personnel and administrative costs by 8.8 million [Swiss francs] and are thus on track to achieve the annual target of 15 million,» Sanderson said.
The upgrade to the technology platform was also progressing well, he added. The new, cloud-based SimCorp platform was at the heart of the efficiency plan, and the decommissioning of the old systems had begun. By the end of 2021, all investment portfolios would be transferred to SimCorp, Sanderson said.
Goal 100 Mln Franc Profit by 2024
Looking ahead, Sanderson expects the market environment to be challenging for the remainder of 2021. However, the financial targets would not be changed.
GAM’s goal is a pre-tax profit of 100 million francs ($111 million) and an operating margin of 30 percent by 2024.
