Investment management assets at GAM fell 5.6% in the six months ended June 30, to 21.9 billion Swiss francs ($24.4 billion), with the firm's chairman reiterating the importance of a planned takeover by Liontrust in bringing "corporate stability."
The drop in investment management AUM was driven by 2.2 billion francs in net outflows, which was partially offset by 900 million francs in positive market movements and foreign exchange effects, an update said Thursday.
GAM's total assets under management, which includes investment management and fund management services, fell 9.3% over the period.
Net outflows were recorded across the board, at 1 billion francs for fixed income strategies, 600 million francs for multiasset, 400 million francs for alternatives and 200 million francs for equities.
Liontrust Asset Management in May agreed to acquire GAM in a $120 million deal, which the firms at the time said would create a manager with $65.8 billion in assets under management and advisement.
The deal has been met with opposition from some GAM shareholders, with its third-largest investor Global Emerging Markets, a $3.4 billion alternative investment group, rejecting Liontrust's offer, Bloomberg reported.
However, GAM's largest shareholder, Silchester International Investors, informed GAM that it would tender its shares — about 17.3% of GAM's share capital — into Liontrust's offer.
Liontrust's offer to purchase the firm has been extended to Friday, from the original date of July 25.
"Our first half results demonstrate the challenges which GAM faces, which are among the reasons why the board continues to recommend the Liontrust offer to GAM shareholders," David Jacob, chairman at GAM Holding, said in the update.
"Our investment teams continue to excel, but the need for corporate stability is essential to give our clients confidence to allocate to our strategies. The stable platform and investment that will be provided by the combined group, once the Liontrust offer is completed, gives our shareholders an opportunity to participate in future value creation."
GAM said its headcount continued to fall in the six months ended June 30, with the number of full-time employees standing at 519, down 4%. Over the year, headcount has fallen by almost 13%.
A spokesman for GAM said the firm does not break down details of headcount, but said the investment teams remain stable.
