January 17, 2020 / 8:01 AM / 2 months ago

Asset manager GAM Holding sees 2019 break-even after outflows

ZURICH, Jan 17 (Reuters) - Embattled Swiss asset manager GAM Holding expects to just break even for 2019 as results continue to suffer from a sharp outflow of assets that followed a row with its former star fund manager.

GAM expects to report underlying 2019 profit before taxes, excluding non-recurring and acquisition-related items, of around 10 million Swiss francs ($10.4 million), down from 126.7 million for 2018, it said on Friday.

This was driven mostly by a drop in assets under management (AuM), and related revenues in investment management, from 56.1 billion francs at the end of 2018 to an estimated 48 billion at the end of 2019.

AuM at its private labelling business were set to be 84 billion, from 76.1 billion a year earlier.

GAM expects to break even in 2019 according to IFRS accounting standards including one-off and acquisition-related items. It had an IFRS net loss of 929.1 million in 2018 after taking a 883 million franc goodwill impairment charge.

Full results are due on Feb. 20.

$1 = 0.9654 Swiss francs Reporting by Michael Shields

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