Swiss asset manager GAM has reported almost CHF18bn (£13.9bn) in outflows over the past three months, following the liquidation of its flagship absolute return strategy, the group has announced.
GAM had to liquidate its unconstrained/absolute return bond (ARBF) strategies following the sudden suspension of manager Tim Haywood over misconduct allegations.
Between June and September, the group’s assets under management dropped from CHF163.8bn (£126.8bn) to CHF146.1bn (£113.1bn), of which CHF10.8bn (£8.3bn) due to the liquidation of the ARBF strategies illustrating that investors also withdrew money from other GAM strategies.
The effects were further reinforced by challenging market conditions and adverse trends on foreign exchange markets, the group said.
Group’s chief executive Alexander Friedman said: “The consequences of the suspension of an ARBF investment director marked a clear setback for GAM. We are taking immediate and near-term measures to support GAM’s profitability.”
Following the publication of this news, GAM’’s share price plunged by more than 20% from CHF6.92 to CHF5.72, sparking further rumours of potential takeover bids for the group, as Bloomberg reported earlier this month.
