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GAM fears lower-than-expected profits for H1

GAM fears lower-than-expected profits for H1

GAM expects to incur a non-cash impairment charge of around CHF 59 million net of taxes on the intangible assets related to its purchase of Cantab Capital Partners, the group has announced in a statement.

The asset manager, which acquired Cantab Capital Partners in October 2016, has recorded lower assets under management and cash flows than those forecast at the time of the acquisition, prompting the latest profit warning.

The Zurich-based group said it expects net profits of approximately CHF 25 million for H1 2018, compared with the CHF 67.7 million it recorded in the first half of 2017.

Alexander Friedman, CEO of GAM, said: ‘We continue to see GAM Systematic Cantab as a key driver of future growth for our company.

‘While the developments in assets under management since the acquisition have been below our expectations, they have been in line with industry trends, as investors have turned more averse toward high-volatility hedge funds.’

GAM’s full H1 results will be announced on 31 July.

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