Due to heavy asset outflows, GAM expects a significantly higher loss for 2022. Despite cost reduction, a further strategy review is necessary. It also delays the publication of the annual results to the end of April.
Long-suffering Swiss asset manager GAM expects to post an adjusted pre-tax loss of around 42.8 million Swiss francs ($46.3 million) for 2022, compared to a 2021 loss of 9.6 billion francs, the company announced Wednesday. The net loss is seen at 309.9 million francs, up from a loss of 23.3 million francs in 2021, after first-half results had already shown a net loss of 275.2 million francs.
«2022 was a challenging year with our financial results seeing the impact from a market-led decline in our assets under management,» GAM Chairman David Jacob wrote. The disappointing financial results and very challenging markets, like much of the industry, suffered negative net asset growth.
Cost and Staff Cuts
GAM described its investment performance as strong, noting that over three years, 66 percent of fund assets under management outperformed their Morningstar peers.
The company had met its cost-cutting targets, with total expenses more than 20 million francs lower in 2022 compared to the previous year. At the same time, headcount at the end of 2022 was 11 percent lower than at the end of 2021
Change on the Board
Publication of the annual results will now be postponed to April 25. The figures will be published together with the interim report in the first quarter. An update on strategic progress is also to be given then.
There is also a change on the Board of Directors. Following the planned retirement of Benjamin Meuli at the end of 2022, current board member Jacqui Irvine is appointed Vice Chairman.
