February 21, 2019 / 6:16 AM / a month ago

BRIEF-GAM Holding Says AUM In Investment Management Down At CHF 56.1 Bln

Feb 21 (Reuters) - GAM Holding AG:

* ASSETS UNDER MANAGEMENT (AUM) IN INVESTMENT MANAGEMENT DOWN TO CHF 56.1 BILLION() AS AT 31 DECEMBER 2018

* UNDERLYING PROFIT BEFORE TAXES OF CHF 126.7 MILLION IN 2018, COMPARED TO CHF 172.5 MILLION IN 2017

* IFRS NET LOSS OF CHF 929.1 MILLION IN 2018

* FOR 2019 AND BEYOND, GAM WILL TARGET A MINIMUM DIVIDEND PAY-OUT OF 50% OF UNDERLYING NET PROFITS

* RECONFIRMING FINANCIAL OUTLOOK ANNOUNCED IN DECEMBER 2018

* FOLLOWING CONCLUSION OF INVESTIGATION AND DISCIPLINARY PROCEEDINGS, SUSPENDED INVESTMENT DIRECTOR HAS NOW BEEN DISMISSED FROM COMPANY FOR GROSS MISCONDUCT

* RESTRUCTURING ANNOUNCED IN DECEMBER 2018 IS UNDERWAY.

* EXPECTS TO ACHIEVE A REDUCTION IN FIXED PERSONNEL AND GENERAL EXPENSES OF AT LEAST CHF 40 MILLION BY END OF 2019

* REDUCTION IN FIXED PERSONNEL AND GENERAL EXPENSES: ONE THIRD OF SAVINGS TO BE REFLECTED IN 2019 AND FULL BENEFIT IN 2020

* SUSPENDED ITS MID- TO LONG-TERM FINANCIAL TARGETS

* 2019 WILL PROVE A CHALLENGING YEAR

* ALONG WITH NORMAL FLOW DYNAMICS, DAILY FLOW POSITION HAS IMPROVED IN FIRST WEEKS OF 2019 COMPARED TO DECEMBER 2018, BUT INSTITUTIONAL FLOWS REMAIN UNPREDICTABLE

* FOR 2018 FINANCIAL YEAR, BOARD OF DIRECTORS WILL PROPOSE TOTAL VARIABLE COMPENSATION OF CHF 5.6 MILLION FOR GROUP MANAGEMENT BOARD, DOWN 59% COMPARED TO 2017

* NO VARIABLE COMPENSATION WILL BE PAID TO FORMER GROUP CEO FOR 2018

* NO ANNUAL BONUS WOULD BE AWARDED TO GROUP CFO FOR 2018 PERFORMANCE YEAR Source text for Eikon: Further company coverage: (Gdynia Newsroom)

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