Shares of publicly listed GAM fell by 16% this morning, following an announcement by the Zürich-headquartered asset manager that its profits for H1 2016 are set to decline by 50%.
The group, which is listed on SIX Swiss Exchange, confirmed that it expects H1 2016 profits to half from the CHF 101.5m (€93.7m) reported in H1 2015.
According to GAM, the fall in profits is largely due to a fall in performance fees, which are expected to be at CHF1m (€0.92m), compared to CHF 44.1m (€40.7) in the first half of 2015, while net management fees and commissions are also expected to decline.
The group aims to recoup some of the losses through a reduction in personnel expenses and ongoing cost control.
GAM will report its official half-year results on 3 August 2016.