Reports
GAM Re-Elects Chairman Amid Recovery Quest

The international asset management house is seeking to repair its fortunes after suffering heavy withdrawals last year. A manager of its absolute return bond fund range, who was suspended pending an enquiry, was subsequently fired.
GAM Holding, the
wealth manager hit by client outflows amid the suspension of a
senior manager, has re-elected its chairman, three existing board
members and voted for three new additions to the board.
The Zurich-listed firm voted that Hugh Scott-Barrett remain
chairman and re-elected Hugh Scott-Barrett as chairman of the
board. Benjamin Meuli, Nancy Mistretta and David Jacob were also
re-elected to its board. Katia Coudray, Jacqui Irvine and Monika
Machon joined the board.
The organisation, as previously reported, intends to cut costs by
at least SFr40 million ($40.3 million) by the end of next year,
which will include shedding employees. To rebuild its capital,
GAM’s directors said the firm won’t pay a dividend for 2018.
Total assets under management and private labelling rose in the
first three months of 2019. AuM rose to SFr137.4 billion ($136.2
billion) as at 31 March, from $132.2 billion at the end of
2018.
On the investment management front, AuM stood at SFr55.1 billion,
down by 2 per cent from 31 December 2018, driven by net outflows
of SFr4.0 billion, partially offset by positive market and
foreign exchange movements of SFr3.0 billion.
Investors pulled billions from GAM’s Absolute Return Bond fund
range last year after the unit’s manager, Tim Haywood, was
suspended in late 2017. (He has now been fired, and is reportedly
contesting this decision.) The firm launched a probe into
Haywood's conduct in the summer of 2018 after concerns about his
activity were flagged by an internal whistleblower. At the time
of Haywood’s suspension in late July, GAM said that it acted
because “some of his risk management procedures and his record
keeping in certain instances” fell short of requirements. One
casualty of the affair was Alex Friedman, its chief executive,
who resigned.