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Net outflows push GAM to beef up ESG

New head of sustainable and impact investment role to be filled imminently


Jessica Tasman-Jones

Gam Investments is stepping up its ESG efforts in an effort to improve asset growth as Q3 2020 results show net outflows from every asset class in the investment management business except absolute return, which remained flat.

Group assets under management finished the quarter slightly up at CHF120.4bn (€112.3bn) from CHF119.4bn at the end of June.

Within investment management, net outflows totalled CHF2.4bn, but the private labelling business enjoyed net inflows of CHF0.4bn.

In terms of performance, 22% of funds outperformed their benchmark over a three-year period but this increased to 69% over a five year period. For the period ended 31 March, these figures had been as low as 14% and 17% respectively. Of Gam’s AUM tracked by Morningstar, 55% outperformed their category peer group over three years and 42% over five years.

Going green

The results stated that sustainable investment would be a key part of Gam’s growth strategy. A global head of sustainable and impact investment role is being launched with the appointee soon to be announced. New products would also be launched in the “near future”.

Strong year-to-date investment performance was highlighted in Gam’s European equities, disruptive growth and technology, Japanese equities, Swiss equities and emerging market rates strategies.

Group chief executive Peter Sanderson said Gam was seeing “high levels of positive client interaction” and that employees had been navigating covid-19 with “with increased levels of collaboration and innovation”. “Our strategy remains on track, and we have in place strong leadership across the firm to deliver on the opportunity for Gam to grow.”

Assets under management movements (CHF bn)