for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Swiss group GAM loses private labelling client

ZURICH, Jan 26 (Reuters) - Swiss asset manager GAM Holding has lost a significant client in its private labelling business, it said on Tuesday, putting its shares under pressure.

The unnamed company services client has given notice it will transfer business to another provider as a part of a broader strategic relationship, GAM said in a regulatory release.

As of the end of 2020, the client’s assets under management were 21.5 billion Swiss francs ($24.18 billion) with associated annual revenue of approximately 5 million francs.

The transition to the new provider was set to start in the second half of 2021.

GAM’s private labelling business helps funds with structuring, legal set-up, fund administration arrangements and management company services.

GAM said the redemption from its lower-margin Private Labelling business had no impact on its Investment Management business.

The annualised revenue it is losing are approximately 2% of GAM’s full-year 2020 consensus revenue, a spokesman said, and the financial impact on GAM was “minimal”.

GAM shares were down 1.7% in early trade.

“The loss of revenue from this client departure is not threatening for GAM, but it is annoying for an asset manager that has to pedal hard to break even despite fierce cost-cutting measures,” ZKB analysts noted.

$1 = 0.8890 Swiss francs Reporting by Michael Shields; editing by Jason Neely

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up