GAM Holding (GAMH.S) expects to post a loss for the first half of 2022, the Swiss asset manager said; citing turbulent global markets and investor caution which reduced its assets under management.
The company expects to report an underlying loss before tax of about 15 million Swiss francs ($15.4 million); compared to an 800,000 franc profit for the first half of 2021, it said. The company is due to report its figures on Aug. 3.
Total assets under management fell to 85.2 billion francs from 99.8 billion at the end of 2021, it added, mainly due to negative market movements.
Global stock markets have plunged this year due to the war in Ukraine, resurgent inflation and COVID-related shutdowns in China. The MSCI World Index has lost nearly 21% since Jan 1. (.MIWO00000PUS)
“During the first half of 2022 we have seen extraordinary economic and geopolitical conditions having a significant impact on markets,” said Chief Executive Peter Sanderson.
As a result of this volatility, clients have been exercising greater caution.”
GAM said negative market movements of 12.4 billion francs and foreign exchange losses of 700 million francs accounted for almost 80% of the reduction in assets under management in the first half.
The company also saw 3.6 billion francs in net outflows from its investment management and fund management services businesses.
-Reuters.
