Every public business wants some love from brokerages, or at least some protection through the research group. gam must feel only a little lonely. just three analysts now bother with the asset manager, which is listed in switzerland and london, according to s&p worldwide.
An industry worth that shrinks by almost 90 per cent in five years has that effect. so do four profit warnings in 2 many years. the latest emerged on friday, as investment manager revealed it can report losings because of its future first-half outcomes.
It isn't that gam is starved of interest. it just receives the incorrect sort. a scandal concerning former star profile manager tim haywood resulted in an exodus of client money. a poorly-timed buy of quantitative hedge fund cantab generated a previous disability charge. now, the surprise involves a goodwill disability of sfr410m ($431m) foisted upon it because of the accounting treatment of its spinout from swiss exclusive bank julius baer in 2009. no surprise gams analyst listing is so quick. in comparison, jupiter fund management and guy group have actually coverage from 15 experts each.
Boss peter sanderson, keen in order to make pals, has guaranteed to lift profits since joining from blackrock in september. that appears difficult whenever assets under administration sfr118.9bn at the time of may have dropped a-quarter because the end of 2017. these types of funds are from its extremely low-margin (4 basis things) private-label business, hosting third-party supervisors. gams operating margins just last year had been far less than half those of guy groups 25 percent, in accordance with s&p international.
Mr sanderson is ever before hopeful. he started the year planning to cut overheads, nevertheless coronavirus crisis forced a rethink. he doubled their target to sfr65m by the following year, above a fifth of overheads, mainly from cutting staff figures. if they can provide, the taxed and capitalised savings would tot around nearly sfr470m of price, over gams current market capitalisation.
Reputational and monetary hits from scandals, bad acquisitions and profit warnings keep him with an uphill struggle. there was little hope of gams trio of analysts ever expanding into a chamber orchestra associated with the kind serenading competitors.
If you're a subscriber and want to receive notifications when lex articles tend to be posted, simply click the button add to myft, which appears near the top of this site above the headline.