Gam loses £8.6bn from fund management services mandate

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An unnamed fund management services customer has notified Gam that it will move most of its business in-house starting in the second quarter of 2023.

As of December 31, the mandate was worth 11.5 billion francs (£9.4 billion), which generated around 6 million francs in revenue each year for Gam.

This equates to less than 3% of net fee and commission income for 2021, the company said.

The Swiss manager will be left with 1 billion francs in its fund management services arm after the client transferred 10.5 billion francs to its existing fund administration provider from April 2023.

Gam said he “has a strong pipeline of future business opportunities.”

Sean O’Driscoll, Head of Gam Fund Management Services, said, “We are proud to have helped our client grow their business over a long period of time and look forward to continuing to work with them as a trusted partner. We remain focused on revenue growth by utilizing the full suite of Gam features in response to customer demand for an enhanced offering. »

The loss of another client mandate comes hours after the Financial Conduct Authority fined the Swiss manager £9.1m for failing to manage conflicts of interest with blockchain firm Greensill Capital supply chain at the center of a scandal involving former star manager Tim Haywood. .

Gam has struggled to retain its assets even years later, with AUM falling from £18bn in 2021 to CHF100bn, and to reverse its losses.

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