ÍøÆسԹÏ

"Our brand remains strong"

Daniel Durrer
Head Distribution Switzerland & Liechtenstein, GAM Investments

 

GAM remains in a period of transformation, marked by disputes among its shareholders. To what extent are these tensions affecting the operational recovery, client confidence and new net inflows?

We are making genuine progress, but the turnaround is not yet complete. Our first-half results show that the strategic measures taken over the past two years have led to improved business results and stronger financial performance. Our gross inflows are close to CHF 1 billion. Excluding the liquidation of a mandate by a long-standing client that is restructuring following a merger, underlying net flows are positive. Assets under management have also increased, our investment performance remains strong and the loss has been significantly reduced. We continue to focus on our priorities: delivering strong investment performance for our clients, growing assets under management through disciplined distribution, further improving operational excellence and maintaining strict cost discipline. With the support of Xavier Niel’s family holding company NJJ, a strong, long-term investor, we are very confident that we are well equipped to meet the industry’s future challenges.

GAM is increasingly focusing on a platform model that combines its own investment expertise with that of external specialists. How does this model differ from a traditional multi-boutique platform – and what added value does it offer clients?

In challenging market and geopolitical conditions, clients are actively seeking flexible investment solutions and access to top-tier investment talent with a proven track record and extensive experience across a wide range of market cycles. This has been at the heart of our DNA since 1983. GAM is therefore an agile investment platform today, supported by a robust data, technology and governance architecture. This is the right foundation for a boutique manager. We work with outstanding investment professionals who either join GAM as portfolio managers or manage their strategies on our platform through delegated mandates. They benefit from our global distribution, operational infrastructure, risk management, and regulatory and technological expertise. This gives our clients access to highly specialised investment strategies and leading investment talent without being restricted to a single investment philosophy or house view. This openness enables us to select the best specialists for each asset class and market segment and to provide innovative, differentiated investment solutions.

Switzerland is GAM’s home market, yet the brand has lost some of its standing here in recent years. What does GAM stand for among Swiss investors today – and how do you intend to reposition the brand?

Our brand remains strong because it stands for access to outstanding investment talent and the ability to deliver compelling long-term investment results. GAM is a pioneer in active management, expertise and access to outstanding investment talent. We have well-connected local investment teams in Switzerland while also providing access to leading managers from around the world. Our goal is to continue deepening our close relationships with clients through consistent investment performance, innovation and excellent service.

Alternative investments are becoming a core element of GAM’s new strategy. In which areas does GAM have genuinely distinctive strengths?

Our strength lies in identifying specialist managers with proven expertise and giving them the freedom they need to implement their investment process. We have capabilities in hedge funds, insurance-linked securities, private markets and commodities, alongside our traditional liquid strategies. This combination enables us to offer client-focused, differentiated sources of return that many larger, more standardised asset managers cannot provide.

Private markets are increasingly evolving from a niche investment into an integral component of broader portfolios. What role does GAM intend to play in this market?

We see ourselves as a gateway to specialist private markets opportunities managed by first-class investment teams. Rather than trying to cover every segment ourselves, we focus on partnering with outstanding managers and making their strategies accessible through GAM’s global platform. For example, together with Liberty Street Advisors, we offer our clients access to investments in late-stage companies such as SpaceX before its initial public offering or Kraken.

Private markets investments place significant demands on investors, and investment committees, advisers and clients still need further education. Where should the focus lie: illiquidity, valuation, fees or portfolio construction?

All of these topics are relevant. The focus, however, should be on portfolio construction – in particular the question: ‘What role and added value should a private markets allocation provide within the portfolio?’ Investors need to understand how private markets can complement investments in public capital markets and what they can contribute in terms of diversification, return potential and long-term value creation. At the same time, factors such as liquidity, valuations and fees need to be assessed appropriately in the context of the overall portfolio. Education should aim to establish realistic expectations and ensure that private markets allocations remain aligned over the long term with investors’ investment objectives, risk profiles and individual circumstances.

GAM has delivered above-average relative investment performance. Nevertheless, assets under management have continued to decline recently. How can strong performance be converted more effectively into new net inflows?

Performance is essential, but it is rarely sufficient on its own. Converting strong returns into new net inflows requires client confidence, suitable investment solutions and consistent engagement – particularly after a period of significant change. We have used the past few years to reposition GAM and transform it into a leaner, more agile and scalable investment platform. This was necessary for GAM, but it also reflects changes that we are seeing across the asset management industry. We had to make this transition earlier than many of our competitors, and we believe we have emerged stronger as a result – with greater investment capabilities, closer partnerships and a more compelling range of differentiated strategies. This work continues to strengthen our position. In every region, we have dedicated, well-connected client advisers who are seeing growing client interest, particularly in our expertise in alternative investments. Supported by our strong investment performance and our compelling overall proposition, we are steadily rebuilding that client confidence. The task now is to translate this into sustainable net inflows. We are confident that the commitment and passion of our employees have put the necessary foundations firmly in place.

You returned to GAM in 2024, citing your confidence in the new leadership, the strategy and the product pipeline. Given the continuing challenges, have you ever regretted returning?

No. I returned because I believe in GAM’s long-term potential, and that conviction has not changed. We have a clear strategy, an entrepreneurial culture, strong investment talent, closer partnerships and a majority shareholder with a long-term horizon. That combination is rare. The challenges have been real, but so has the progress. What is particularly encouraging is the quality of the conversations we are currently having with our clients, as well as the strong interest in how the business is developing, especially in alternative investments and diversification. Building a business takes time, and change is rarely linear. However, GAM is a stronger company today than it was when I returned in 2024 and is better positioned for the future.