PRESS RELEASE
Ad hoc announcement pursuant to Art. 53 listing rules:
Financial highlights
- Investment Management AuM at CHF 33.4 billion, with net client outflows of
CHF 1.2 billion and net negative market and foreign exchange (FX) movements of CHF 0.2 billion - Private Labelling AuM at CHF 69.6 billion, with net client outflows of CHF 20.8 billion, including the client transfer of CHF 20.7 billion announced in January (immaterial impact on revenues) and net negative market and FX movements of CHF 0.8 billion
- Investment performance: 43% and 76% of assets under management outperforming their benchmark over 3 and 5 years
Strategic highlights
- Client inflows more diversified; net positive flows into equities year to date; launch of GAM sustainable climate bond strategy with strong client interest
- Strengthened high performing global equities team
- Increased client momentum with significant institutional relationships; strengthened institutional distribution team with two hires in the
USA and two hires inSwitzerland along with a new Head of Global Consultant Relations - New Head of Private Labelling focused on revenue growth by using the full suite of capabilities at GAM in response to client demand for an enhanced fund solutions offering
- GAM corporate governance, once again rated best listed Swiss financial services provider; listed as a signatory to the revised
UK Stewardship Code - Supply chain finance fund, return of client monies on track; expect to return at least 100% of client investment; the fund has recently had its bond fund A-rating reconfirmed by Moody’s
- On track to deliver
CHF 15 million of cost savings in 2021
Peter
Assets under Management
As at
Investment Management
AuM totalled
Net flows by capability
In fixed income, we recorded net outflows of
In equities, we saw another quarter of positive net inflows of
In systematic, net outflows totalled
Net client assets in multi asset, alternatives and absolute return remained flat.
Assets under management movements (CHF bn)
Capability | Opening AuM | Net client flows | Market/FX movements | Closing AuM |
Fixed Income | 15.6 | (0.6) | - | 15.0 |
Equity | 7.9 | 0.1 | - | 8.01 |
Multi asset | 7.6 | - | (0.1) | 7.5 |
Systematic | 2.4 | (0.7) | (0.1) | 1.6 |
Alternatives | 0.5 | - | - | 0.5 |
Absolute Return | 0.8 | - | - | 0.82 |
Total | 34.8 | (1.2) | (0.2) | 33.41,2 |
Investors in the
Investment performance
As at
Our equity investment strategies have delivered strong performance with 70% and 77% of AuM outperforming their respective benchmarks over three- and five-years, with many strategies in the top quartile or top decile relative to their Morningstar3 peer groups across time periods. Our fixed income strategies saw strong year-to-date performance resulting in 78% of total AuM outperforming their benchmark over five years; the three-year outperformance was 28%.
Private Labelling
Our Private Labelling business reported AuM of
Assets under management movements (CHF bn)
Fund domicile | Opening AuM | Net flows | Market/FX movements | Closing AuM |
36.6 | (21.6)4 | (0.1) | 14.9 | |
Rest of | 54.6 | 0.8 | (0.7) | 54.7 |
Total | 91.2 | (20.8)4 | (0.8) | 69.6 |
Strategy Updates
Growth
Client inflows diversifying; strengthened investment teams; new sustainable products
- Client inflows diversifying into equities with net positive equity flows year to date
- Strengthened our global equities team under the leadership of
Mark Hawtin , Investment Director of the Global Growth Equity team - Sustainable climate bond strategy launched in September, building our sustainable product range – strong client interest and first client win
- Additional sustainable strategies in the pipeline, including sustainable version of systematic core macro strategy
Increased institutional client momentum
- Increased client momentum with a number of large financial institutions and pension funds
- New Head of Global Consultant Relations hired to build strong global and strategic relationships to assist and grow GAM’s institutional business
- Two new hires in North American distribution team, which will further expand GAM’s local presence and deepen the firm’s relationships with institutions in the US and
Canada - Strengthening presence in Switzerland’s institutional market with experienced hires in
Geneva andZurich
Focus on revenue growth in PLF in response to client demand for an enhanced offering
- Sean O’Driscoll, the new Head of Private Labelling focused on revenue growth, by using the full suite of capabilities at GAM in response to client demand for an enhanced fund solutions offering
- This employs a ‘One GAM’ approach, leveraging our global network, enhancing operational synergies, and offering a full range of fund services and solutions
Transparency
- GAM once again ranked as best listed financial services provider in Inrate’s Corporate Governance zRating, ranking 15th overall out of a total of 171 companies listed in
Switzerland – demonstratesGAM Holding's continued commitment to strong corporate governance
- Listed as signatory to the revised
UK Stewardship Code - GAM joined the United National Global Compact (UNGC), committing to aligning the firm’s strategy and operations with the UNGC’s Ten Principles
- Launch of ESG client reports for certain funds, outlining funds’ ESG ratings, ESG score breakdowns and carbon intensity, relative to their benchmarks
Efficiency
- Technology platform upgrade continues to make good progress
- SimCorp is proving to be a resilient backbone for our operations with the capability to deliver enhanced levels of service and reporting for our clients
- Workday, our new Finance and HR platform, successfully implemented
- New Multrees technology platform is now supporting our wealth management business
- On track to deliver
CHF 15 million of cost savings in FY 2021
Outlook
We expect the market environment to remain challenging but believe that we are well positioned to service client demand and enhance revenues from our distinctive range of investment products and fund solutions.
Upcoming events:
17
For further information please contact:
Global Head of Communications and Investor Relations
T +44 20 7917 2241
Investor Relations Media Relations Media Relations
Jessica Grassi Kathryn Jacques Ute Dehn Christen
T +41 58 426 31 37 T +44 20 7393 8699 T +41 58 426 31 36
Visit us: www.gam.com
Follow us: Twitter and LinkedIn
About GAM
GAM is a leading independent, pure-play asset manager. The company provides active investment solutions and products for institutions, financial intermediaries, and private investors. The core investment business is complemented by private labelling services, which include management company and other support services to third-party asset managers. GAM employed 652 FTEs in 14 countries with investment centres in
Disclaimer regarding forward-looking statements
This press release by
These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. The Company expressly disclaims any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this press release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.
1 Including
2 Including
3 The peer group comparison is based on ‘industry-standard’ Morningstar Direct Sector Classification. The share class references in Morningstar have been set to capture the oldest institutional accumulation share class for each and every fund in a given peer group.
4 Including
Attachment
- Ad hoc announcement pursuant to Art. 53 listing rules_
GAM Holding AG interim statement30 September 2021
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