This improvement is attributed to the implementation of a new cost management system, which has streamlined processes and reduced waste.

Revenue growth: GAM’s revenue has increased by 15% compared to FY 2023, driven by strong performance in the investment management segment.

Net income: The company’s net income has improved by 25% compared to FY 2023, largely due to the cost optimisation initiatives.

Operating expenses: Underlying expenses have decreased by 20% compared to FY 2023, resulting in a significant improvement in profitability.
Cost Optimisation Initiatives

GAM has implemented a range of cost optimisation initiatives across the business, including:

Streamlining processes: The implementation of a new cost management system has streamlined processes and reduced waste.

Outsourcing: GAM has outsourced certain functions to reduce costs and improve efficiency.

Restructuring: The company has restructured its organisational structure to eliminate redundancies and improve productivity.
Investment Management Segment

The investment management segment has been a key driver of revenue growth for GAM.

Key Features of GAM

Investment Products

GAM offers a wide range of investment products, including:

Equity and fixed income securities

Alternative investments, such as private equity and real estate

Hedge funds and other alternative investment strategies

Index funds and ETFs

Investment Strategies

GAM employs a range of investment strategies, including:

Active management

Passive management

Hybrid strategies that combine elements of both

ESG (Environmental, Social, and Governance) investing

Distribution and Sales

GAM has a strong global distribution network, with a presence in over 30 countries.

GAM will continue to partner with best-in-class external managers.

GAM has partnered with Sun Hung Kai & Co. Ltd, a leading investment manager in Greater China, to drive growth and enhance its distribution capabilities across the region.

GAM has also partnered with other best-in-class external managers to expand its capabilities and improve its investment performance.

These partnerships enable GAM to access new markets, products, and investment strategies, while also providing its clients with access to a broader range of investment opportunities.
Enhancing Distribution Capabilities

GAM’s partnership with Sun Hung Kai & Co.

Key Developments

Q4 2024 Results

We reported IFRS net loss after tax of CHF 70.9 million for the fourth quarter of 2024. This represents a significant improvement from the IFRS net loss after tax of CHF 1.1 billion in Q4 2023. • The improvement in Q4 2024 was driven by a decrease in net interest expenses and a decrease in operating expenses. • The decrease in net interest expenses was primarily due to the reduction in interest-bearing liabilities.

The facility is used to support the company’s growth and expansion plans. The Rock loan facility is a significant source of funding for the company, providing a stable and predictable source of capital.

The facility is a revolving credit facility, allowing the company to draw down funds as needed.

The facility is secured by a mortgage over the company’s Swiss and UK properties.

The facility has a fixed interest rate of 4.5% per annum.

The facility has a maturity of 5 years, with the option to extend for an additional 2 years.

GAM is now focusing exclusively on its Investment (Specialist Active and Alternatives) and Wealth Management businesses. It is expanding its distribution reach and capabilities, amplifying its core active strategies, and diversifying into new product areas.

This partnership will enable us to expand our global reach and enhance our competitive edge.

Enhanced product offerings through the integration of GAM’s investment solutions with Sun Hung Kai’s expertise in Asian markets.

Increased global reach through the combined forces of GAM and Sun Hung Kai, enabling the company to tap into new markets and customer segments.

Improved distribution capabilities, allowing GAM to expand its presence in key regions and increase its market share.

Access to innovative investment solutions and research capabilities, further enhancing GAM’s competitive edge.
Innovation and Product Development

The strategic alliance with Sun Hung Kai & Co. will enable GAM to develop innovative investment solutions that cater to the evolving needs of its clients.

Key Highlights of GAM’s Expansion

GAM, a leading global investment management firm, has taken a significant step forward in its expansion plans by opening its second US office in Miami.

GAM has been actively engaged in sustainability initiatives, including the development of a new sustainability framework for its investment managers.

GAM has launched a new sustainability framework for its investment managers, which outlines the company’s approach to ESG (Environmental, Social, and Governance) considerations in investment decisions.

The company has also diversified into new investment products, including a range of sustainable and socially responsible investment options.

GAM has expanded its wealth management offering, providing clients with a broader range of investment solutions and services.
Enhancing ESG Considerations

GAM’s new sustainability framework is designed to guide investment managers in incorporating ESG considerations into their investment decisions.

GAM Funds and Partnerships

GAM Funds is a new initiative by Avenue Capital, a global investment firm, to expand its offerings and reach a broader audience.

GAM is a leading global investment manager with a long history of innovation and a strong commitment to ESG (Environmental, Social, and Governance) principles.

A range of investment products, including equities, fixed income, and alternative investments

A strong research and analysis capability, with a focus on ESG factors

A global distribution network, with a presence in over 30 countries

GAM’s Specialist Active Investing division has a strong reputation for delivering high-quality investment solutions that meet the needs of institutional and individual investors.

Expertise in Equities

GAM Investments has a strong presence in the equities market, with a team of experienced professionals who have a deep understanding of the sector. They offer a range of services, including research, portfolio management, and execution, to help clients achieve their investment goals.

54% of AuM outperformed their five-year peer group. 42% of AuM outperformed their Morningstar peer group over the past twelve months. Key findings:

71% of the fund managers reported that their fund outperformed its peer group over the last three years, with 61% reporting that their fund outperformed its peer group over the last five years. 71% of fund managers reported that their fund outperformed its peer group over the past 12 months. This suggests that the majority of the funds in the sample managed to outperform their peer group in each time period. – The median fund size was CHF 1.1 billion, with 23% of the funds having an asset size of CHF 1 billion or more. 42% of the funds had an asset size of CHF 500 million to CHF 999 million. 31% of the funds had an asset size of CHF 250 million to CHF 499 million. – The median fund size was CHF 1.1 billion. – 62% of the fund managers reported that their fund was fully or partially hedged against currency risks. 54% of the fund managers reported that their fund was fully or partially hedged against interest rate risks.

GAM has also been named the best European small group for 2025 by Morningstar.

Lipper’s 2025 overall best European small group award

Lipper’s 2025 top performance awards for four GAM funds

Morningstar’s 2025 best European small group award

GAM’s investment performance has been recognized by several leading industry experts, including Lipper and Morningstar. These awards are a testament to the company’s ability to deliver strong returns for its clients.

Experienced investment team

Dedicated to delivering strong returns for clients

GAM’s investment approach is centered around the idea of creating long-term value for its clients.

The total AuM was CHF 11.9 billion at 31 December 2023.

Asset Management

Private Wealth Management

Asset Servicing

Investment Management

Real Estate

Asset Management

Asset Management is the company’s core business, responsible for managing a wide range of assets on behalf of clients.

The decline in management fee margin is attributed to the increasing competition in the investment management industry, which has led to a decrease in the ability of fund managers to charge higher fees.

The company’s net income was CHF 1.4 million, a decrease of CHF 0.9 million from the previous year. The company’s financial performance is influenced by various factors, including the interest rates on the Rock Investment SAS loan facility, the exchange rates of the Swiss franc against other currencies, and the overall economic conditions in the various regions where the company operates. The company’s management has taken steps to mitigate the impact of these factors, including the implementation of a hedging strategy to manage interest rate risk and the diversification of the company’s revenue streams.

Net Loss: CHF 2.3 million (2024), CHF 0.
4 million (2023)

Net Income: CHF 1.4 million (2024), CHF 2.
3 million (2023)

Interest Expenses: CHF 1.8 million (2024), CHF 0.
8 million (2023)

Revenue: CHF 10.2 million (2024), CHF 9.
5 million (2023)

Impact of Interest Rates and Exchange Rates

The company’s financial performance is heavily influenced by interest rates on the Rock Investment SAS loan facility and exchange rates of the Swiss franc against other currencies. For example, if interest rates on the loan facility increase, the company will incur higher interest expenses, which can negatively impact its net income.

This represents a decrease of 20%.

Underlying personnel expenses decreased by 26% to CHF 76.6 million in 2024.

Fixed personnel costs decreased by 28%, driven by lower headcount.

Underlying general expenses decreased by 20% to CHF 52.
1 million inImpact on the Company

The decrease in underlying personnel expenses and general expenses has a positive impact on the company’s bottom line.

Key Takeaways

The company reported a significant increase in underlying pre-tax loss due to lower net fee and commission income.

Lower personnel and general expenses were unable to fully offset the decline in revenue.

The underlying pre-tax loss in 2024 was CHF 66.8 million, a substantial increase from the CHF 49.
5 million loss inImpact on the Company

The significant increase in underlying pre-tax loss has a substantial impact on the company’s financial performance. The decline in net fee and commission income is a major contributor to this increase. This decline is largely due to the company’s reduced market share in the financial services sector. • The company’s reduced market share is a result of increased competition from other financial institutions.

The Swiss bank UBS has announced its annual results for 2024, revealing a significant decline in its underlying earnings per share. The bank’s net income for 2024 was CHF 1.8 billion, down from CHF 2.3 billion in 2023.

Strategic Focus

GAM’s strategy is centered around three key pillars:

Risk Management: GAM aims to minimize risk by diversifying its investment portfolio and maintaining a strong risk management framework.

Investment Performance: The company focuses on delivering strong investment performance through its active management capabilities and research-driven investment strategies.

Client Relationships: GAM prioritizes building and maintaining strong relationships with its clients, providing them with tailored investment solutions and exceptional service.
Investment Approach

GAM’s investment approach is built around a combination of research-driven strategies and active management. The company’s investment teams work closely with clients to understand their unique needs and goals, and then develop customized investment solutions that meet those needs. • GAM’s investment teams use a range of research tools and techniques to identify investment opportunities and manage risk. • The company’s active management capabilities allow it to respond quickly to changes in the market and make adjustments to its investment portfolio as needed.

GAM Investments is a leading global investment manager with a strong presence in Europe, North America, and Asia.

Active equity and fixed income funds

Index funds and ETFs

Alternative investments

Sustainable and ESG-focused investments

Multi-asset solutions

Investment Strategies

GAM Investments employs a range of investment strategies to generate returns for its clients.

The company disclaims any obligation to update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise. The company is committed to providing high-quality products and services that meet the evolving needs of its customers.

This release is for informational purposes only. The world of finance is a complex and ever-evolving landscape, with numerous players and stakeholders vying for influence and profit. Amidst this chaos, the concept of financial literacy has emerged as a crucial aspect of navigating this complex world.