In accordance with the obligation under the listing rules of the SIX Swiss Exchange (article 53), GAM Holding AG has provided an update on its full-year 2019 underlying results, which as previously stated are expected to be materially lower than the full-year 2018 results.
GAM expects to report an underlying profit before taxes, which excludes non-recurring and acquisition-related items, of approximately CHF10m (including approximately CHF12m of performance fees) for 2019 compared with CHF126.7m (including CHF4.5m of performance fees) for 2018.
This is primarily driven by the decline in assets under management (AuM) and related revenues in investment management from CHF56.1bn as at 31 December 2018 to an estimated CHF48bn as at 31 December 2019.
GAM's private labelling business is expected to end 2019 with AuM of approximately CHF84bn compared to CHF76.1bn as at 31 December 2018. This results in expected total group AuM of approximately CHF132bn as at 31 December 2019 compared to CHF132.2bn as at 31 December 2018.
GAM expects to report a full-year 2019 IFRS net result, including non-recurring and acquisition-related items, of approximately CHF0m compared to an IFRS net loss of CHF929.1m for the full-year 2018 which included a CHF883.4m goodwill impairment charge.
All aforementioned numbers for the full-year 2019 are estimates and final results will be published on 20 February 2020 along with a strategy update.