The Zurich-headquartered asset manager suffered a fall in profit last year against “a challenging market backdrop”.

Switzerland-listed GAM saw its underlying pre-tax profit decline nine per cent year-on-year to SFr 197.8 million ($197.8 million) in 2015.

The group generated an IFRS net profit of SFr 138.3 million, down 18 per cent from 2014. This followed a net charge of SFr 9.5 million for the reorganisation of the business and net charges of SFr 13.9 million for acquisition-related items. GAM gained SFer 4.5 million on the sale of its Cayman fund administration business.

“One year ago we set out our strategic agenda for the coming years. Since then we have focused on disciplined execution, addressing three critical areas: our brand, our operating model and our growth strategy. While the transition is not yet complete, we have made good progress, even against a challenging market backdrop,” said group chief executive Alexander Friedman. 

“Following the strategic steps initiated in 2015, we are focused on executing against our plans, and we have a number of exciting product launches in the pipeline.”

Assets under management fell to SFr 119 billion over the year, compared to SFr 123.2 billion in 2014. The group's investment management business recorded a five per cent drop in assets to SFr 72.3 billion. Here, net inflows of SFr 300 million and assets of SFr 500 million – acquired with the real estate debt business of Renshaw Bay – were offset by negative market and foreign exchange movements, namely the strengthening of the Swiss franc brought on by the Swiss National Bank's abandonment of the SFr1.20 per euro floor in January 2015. 

Meanwhile, net fee and commission income dipped one per cent to SFr 600.6 million, of which net performance fees totalled SFr 82.8 million, up 26 per cent from a year earlier.

Diluted underlying earnings per share were down at SFr 0.98, versus SFr 1.06 in 2014, and the board proposed a full-year dividend of SFr 0.65 per share, unchanged from the previous year.

GAM also announced Daniel Daeniker, most recently vice chairman and member of the compensation committee and of the governance and nomination committee, will step down from the board of directors. Andrew Hanges, region head for the UK, will leave the management board and will continue on as a board member of various investment funds and regulated entities within the group.

In other high-level shuffles, Larry Hatheway, GAM's group chief economist and group head of multi asset portfolio solutions, and Tim Dana, group head of corporate development, will join the management board in May, subject to regulatory approval.