Embattled asset manager GAM has announced a “comprehensive restructuring programme” this morning in the wake of poor anticipated results.
The manager hit headlines in August when it was forced to liquidate the fund range of investment director Tim Haywood after an internal investigation uncovered issues with his risk management procedures and record keeping.
This morning, it says that 2018 results are likely to show assets falling from CHF146bn (£116bn) to CHF139bn.
Underlying pre-tax profit is also likely to come in CHF50m lower at CHF125m.
In the wake of the expected results – which also include a CHF885m writedown in goodwill – the asset manager is looking to shave CHF40m from “fixed personnel and general expenses” by the end of 2019.
The firm is merging some of its investment teams, “consolidating” support functions, and refocusing distribution resources to take advantage of near and mid-term growth opportunities.
GAM is not planning to pay its shareholders a dividend this year.
Group chief executive David Jacob says: “With today’s announcement we are seeking to give our shareholders and our clients the clearest assessment of our financial situation. We are taking decisive action to rebase costs and support profitability, whilst maintaining our focus on client service and control functions. We are determined to do everything it takes to rebuild the trust of our stakeholders.
“We are fortunate to have excellent talent across our business, the ability to continue to invest in areas of strength and an attractive product range to build upon as we reposition GAM for future sustainable growth.”