Ad hoc announcement pursuant to Art. 53 listing rules: GAM Holding
AG releases interim statement for the three-month period to 30
September 2021
21 October 2021
PRESS RELEASE
Ad hoc announcement pursuant to Art. 53 listing
rules: GAM Holding AG
releases interim statement for the
three-month period to 30 September 2021
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 in Switzerland 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 Sanderson, Group CEO, said: “We have made
considerable progress with the strategic transformation of GAM. I
am encouraged by the net inflows into our equity strategies and the
increased momentum in our client relationships, but recognise that
we need to maintain our focus on achieving overall net inflows. We
continue to attract and retain some of the brightest minds in the
industry, which reflects the opportunity we all see for GAM to
grow.”
Assets under Management
As at 30 September 2021, Group AuM totalled
CHF 103.0 billion down from CHF 126.0 billion
as at the end of June 2021. The decline in AuM is largely a result
of a private labelling client transferring to another provider as a
part of a broader strategic relationship with that entity, which we
announced in January this year. The associated revenues, which were
approximately CHF 5.0 million per annum, have a lesser impact for
the financial year 2021.
Investment Management
AuM totalled CHF 33.4 billion1,2, down from CHF 34.8 billion
compared to 30 June 2021, with net client outflows of CHF 1.2
billion, and net negative market and foreign exchange movements of
CHF 0.2 billion.
Net flows by capability
In fixed income, we recorded net outflows of CHF 0.6 billion,
primarily driven by allocation decisions by clients in the GAM Star
Credit Opportunities and GAM Local Emerging Bond funds offset by
inflows into the GAM Star Catastrophe Bond fund.
In equities, we saw another quarter of positive net inflows of
CHF 0.1 billion. While inflows were driven by a variety of funds,
the main contributors were our GAM Star Disruptive Growth, GAM
Luxury Brands Equity, GAM Star Japan Leaders and GAM Swiss Small
and Mid-Cap equities strategies.
In systematic, net outflows totalled CHF 0.7 billion and were
mainly driven by client asset allocation decisions in respect of
GAM Systematic Alternative Risk Premia.
Net client assets in multi asset, alternatives and absolute
return remained flat.
Assets under management movements (CHF bn)
Capability |
Opening AuM1 July 2021 |
Net clientflows |
Market/FXmovements |
Closing AuM30 Sept 2021 |
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 GAM Greensill Supply Chain Finance Fund have
received 89.5% of their total assets so far. The remainder of
payments will be distributed as underlying notes mature over the
next three months and therefore it is expected that clients will
have received at least 100% of their investment through the
liquidation process. The fund has recently had its bond fund
A-rating reconfirmed by Moody’s.
Investment performance
As at 30 September 2021, 43% and 76% of AuM in investment
management outperformed their benchmarks compared to 34% and 74% as
at the end of June 2021 and 52% and 54% outperformed their
respective Morningstar3 peer group over the three- and five-year
periods compared to 48% and 68%, respectively.
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 CHF 69.6 billion,
down compared to CHF 91.2 billion as at 30 June 2021. The decline
includes the outflow of CHF 20.7 billion related to the departure
of a client which is transferring its business to another provider
as a part of a broader strategic relationship with that entity and
which was announced in January.
Assets under management movements (CHF bn)
Fund domicile |
Opening AuM 1 July 2021 |
Net flows |
Market/FX movements |
Closing AuM 30 Sept 2021 |
Switzerland |
36.6 |
(21.6)4 |
(0.1) |
14.9 |
Rest of Europe |
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 and Zurich
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 –
demonstrates GAM 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 February
2022 Full-year
results 2021
For further information please contact:
Charles Naylor
Global Head of
Communications and Investor RelationsT +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.comFollow 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 London, Cambridge, Zurich,
Hong Kong, New York, Milan, and Lugano as at 30 June 2020. The
investment managers are supported by an extensive global
distribution network. Headquartered in Zurich, GAM is listed on the
SIX Swiss Exchange with the symbol ‘GAM’. The Group has AuM of CHF
103 billion1,2 (USD 110.4 billion) as at 30 September 2021.
Disclaimer regarding forward-looking
statements
This press release by GAM Holding AG (‘the Company’) includes
forward-looking statements that reflect the Company’s intentions,
beliefs or current expectations and projections about the Company’s
future results of operations, financial condition, liquidity,
performance, prospects, strategies, opportunities and the industry
in which it operates. Forward-looking statements involve all
matters that are not historical facts. The Company has tried to
identify those forward-looking statements by using words such as
‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’,
‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’,
‘continue’ and similar expressions. Such statements are made on the
basis of assumptions and expectations which, although the Company
believes them to be reasonable at this time, may prove to be
erroneous.
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 CHF 20.5m of equity funds in liquidation (GAM Star
(Lux) European Momentum).
2 Including CHF 257.0m of absolute return funds in liquidation
(GAM Star (Lux) European Alpha, GAM Absolute Return Equity Europe,
GAM Star (Lux) Convertible Alpha, GAM Star (Lux) Global Alpha).
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 CHF 20.7 billion of AuM related to the redemption of
a client which was communicated on 26 January 2021.
- Ad hoc announcement pursuant to Art. 53 listing rules_GAM
Holding AG interim statement 30 September 2021
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