GAM has been working to spin off what it sees as non-core business, trim costs and focus on ways of building out its business following a bruising setback in 2018.
GAM Investments, part of Zurich-listed GAM Holdings, which is
restructuring its business to turn its fortunes around, has
formed a strategic alliance with Hong Kong’s Sun Hung Kai
& Co, an alternative investment firm.
This alliance aims to drive growth and enhance client coverage
and capabilities across Greater China (Hong Kong, mainland China,
Taiwan and Macau), GAM said in a statement yesterday. The pact
takes effect from 1 August.
The alliance includes “significant new investment in an expanded
distribution platform and new strategic alliance serving
investors across the region,” the firm said.
Sun Hung Kai Capital Partners Ltd, the licensed subsidiary of SHK
& Co, will drive the distribution and servicing of GAM’s funds
across Greater China. SHK & Co will use GAM”s operational
processes, systems, and local Hong Kong talent in the business.
“GAM remains steadfast in its commitment to Greater China,
ensuring continued service and support through this alliance with
SHK & Co,” GAM said.
The pact was announced days after GAM said it was transferring
its management company activities in the UK, Ireland and
Luxembourg to Apex Group, the financial services business. The
firm has been restructuring its business in recent years
following client outflows prompted by the suspension in 2018, and
eventual sacking, of a high-profile manager in 2019.
More tools in the box
GAM said the alliance adds to GAM’s product offering of high
conviction equity, specialist fixed income, multi-asset,
sustainable, and a growing alternative investment solutions
capability. These products will be available to wholesale, family
offices, and institutional channels. GAM and SHK & Co will work
together to develop new product solutions for the local and
international market.
GAM’s total assets under management were SFr63.8 billion ($71.2
billion) as of 31 December 2023, with investment management at
SFr19.3 billion and fund management services at SFr44.7 billion.
As of 31 January 2024, fund management services were transferred
to the Carne Group.
For the full year of 2023, GAM announced an IFRS net loss after
tax of SFr82.1 million, down from SFr290.0 million in 2022. The
group posted an underlying loss before tax of SFr49.5 million,
from SFr42.5 million in 2022. Investment management assets under
management fell to SFr19.3 billion, from SFr23.2 billion as of 31
December 2022.