Zurich-based asset manager GAM posted an operating pre-tax loss of 34,1 million francs for the first half of 2025. In the same period last year, the loss amounted to 33,2 million francs. According to a statement released on Thursday, lower net fee and commission income could not be fully offset by cost reductions.

The IFRS net loss after tax came to 40,7 million francs, compared to 31,8 million previously. The 6,3 million franc difference between the operating and net pre-tax loss was attributed to various items, including restructuring costs of 3,4 million francs.

Negative Net Outflows

Assets under management (AuM) stood at 12,7 billion francs as of mid-year, down from 16,3 billion at the end of 2024. The net money flow was negative at 3,0 billion francs.

Cash holdings declined to 42,4 million francs from 65,1 million. The 100 million franc credit facility provided by Rock Investment (a subsidiary of NJJ) was extended through December 2027. As of the end of June 2025, 16,5 million francs had been drawn.

New Phase Following Transformation

The company is entering a new phase following the completion of its transformation. «The transformation of our company has been thorough and deliberate,» said new CEO Albert Saporta, who assumed leadership in early July. «We have simplified and restructured the organization to operate as an efficient and focused business.»

The aim is to grow assets under management. GAM plans to focus on clients and promote specialized active, alternative, and wealth management strategies, along with other strategic growth initiatives. The company will benefit from the support of majority shareholder NJJ Holding.

In the first half of the year, GAM implemented several key strategic steps. These included the establishment of a new European equity team, partnerships with Swiss Re and Gramercy EMD, and strengthening of distribution through the return of Tim Rainsford as Group Chief Distribution Officer, as well as the hiring of new senior sales managers in the UK, in wealth management, and in France, Italy, and Germany.