GAM: Swiss asset manager aims for 2026 profit despite Liontrust debacle

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More than 2,000 companies filed for insolvency in February.
More than 2,000 companies filed for insolvency in February.

Swiss asset manager GAM is targeting a profit in 2026 after a tumultuous couple of years that saw it reject a takeover bid from rival Liontrust.

GAM reported that it had an IFRS (International Financial Reporting Standards) net loss of 39.1m Swiss francs (£26.6m) in the first half of the year, only around half of what it lost in the first half of 2023.

However, the group’s underlying loss before tax was 33.2m Swiss francs (£30.3m) in the first half of the year, compared to just 22.5m Swiss francs (£20.5m) in 2023.

The Swiss asset manager was thrown into chaos last year after asset manager Liontrust attempted a bid for the company, only for GAM’s shareholders to unexpectedly reject the deal by a margin of two-to-one.

GAM’s management had warned that the group would not be able to survive without the takeover, but a shareholder group named NewGAMe offered an alternative strategy.

Now, NewGAMe is the largest shareholder in GAM, with its candidates to the board winning appointments. Its parent company, Rock Investment SAS, is set to become the majority shareholder in GAM by the beginning of the fourth quarter.

In the group’s half year results this morning, it struck an optimistic tone, aiming to make a profit by the end of next year.

Despite reporting that assets under management had fallen by 300m (£273m) Swiss francs, GAM’s stock price rose 4.5 per cent as a result. It is still down 40 per cent since the start of 2024, and 59 per cent over the last year.

“Net outflows of 1.8bn francs were partially offset by positive market and currency developments of 1.6bn Swiss francs,” the group added.

Income for the group came in 42 per cent lower than last year, though this includes a significant decline in income from the sale of its fund management services division to Carne Group.

The investment management division, core to NewGAMEe’s turnaround plans, posted a 21 per cent decline in fee income, but cost optimisation led to a 20 per cent decrease in underlying expenses.

“We have made great progress in implementing our turnaround strategy and building the foundations for future growth and sustainable profitability,” said GAM CEO Elmar Zumbuehl.