(updated with clarification)
A shareholder in money management firm GAM Investments urged the firm's management to address continued outflows.
In a statement Monday, Prague-based Krupa Global Investments, which holds a 3% stake in GAM shares, options and contracts, called on the Swiss firm to attract a strategic investor, following disappointing performance in the recent quarters.
Assets under management for GAM's investment management business fell to 52.1 billion Swiss francs ($53.3 billion) as of June 30, down from 56.1 billion Swiss francs as of Dec. 31, 2018.
Krupa's statement said a full-year investor update from GAM showed that the investment management business fell further in the recent fourth quarter, after stabilizing in the third quarter, "when global markets (were) performing well."
"KGI as a major shareholder is not happy with GAM´s performance in recent quarters and we have doubt that February 2020 full-year results (to be published Feb. 20) will change the perspective unless (a) new CEO and board take action," Krupa said in the statement.
Krupa suggested that a qualified asset management professional join the board of directors at the firm's annual general meeting in 2020.
The firm also suggested that GAM form an independent committee from representatives of shareholders to evaluate further options.
Earlier attempts for a sale, following what the Krupa statement described as the “Tim Haywood scandal,’’ were not satisfactory because of a lack of explanation for shareholders, the company said. GAM said in an earnings release for 2018 that it had dismissed Mr. Haywood, GAM’s investment director, for gross misconduct.
"We are not satisfied with management's silence and communication towards investors," Pavol Krupa, chairman of Krupa Global Investments, said in the statement. GAM and its shareholders deserve better reporting, he said, noting that GAM's recent update for full-year results is not positive "even though GAM said it would report profit."
Mr. Krupa added he would like to meet with CEO Peter Sanderson after the firm's results are published in February to hear his strategy and vision.
A GAM spokeswoman declined to comment.
