Swiss funding group GAM has issued a revenue warning and blamed a unstable market atmosphere for a hefty accounting loss within the first half of 2022.

The Zurich-headquartered firm stated on Monday it anticipated to report an underlying loss earlier than tax of about SFr275mn ($282mn) for the primary six months of the 12 months.

GAM stated the affect of the fallout of the conflict in Ukraine on markets had resulted in a 17 per cent fall in its belongings beneath administration, from SFr99.8bn on December 31 to SFr83.2bn on June 30. Unfavorable market actions and overseas trade swings accounted for nearly 80 per cent of the discount in belongings beneath administration within the first half.

This drop in belongings means GAM expects to report a non-cash impairment cost of about SFr246mn, associated to the intangible model worth that was created by the acquisition of GAM by UBS in 1999 and Julius Baer in 2005, earlier than it regained its independence.

Peter Sanderson, chief govt of GAM Investments, stated in an announcement: “Through the first half of 2022 now we have seen extraordinary financial and geopolitical situations having a big affect on markets. On account of this volatility, purchasers have been exercising higher warning.”

GAM’s advert hoc announcement is the most recent signal of a difficult begin to the 12 months for asset managers, as unstable markets have unsettled traders and pushed down the worth of the portfolios that generate their price earnings. Final week, BlackRock’s outcomes fell quick of sharply lowered expectations in what the world’s largest cash supervisor described because the worst atmosphere in a long time.

GAM group has struggled for the reason that spectacular departure of its former star asset supervisor and fixed-income chief Tim Haywood, in July 2018.

Underneath Sanderson, a BlackRock veteran who took over as chief govt in July 2019, GAM has been making an attempt to show round its fortunes. Sanderson has instigated steep cost-cutting measures and shed a whole bunch of jobs. However his efforts have been hampered by legacy issues and exterior shocks resembling disruption wrought by the pandemic and the conflict in Ukraine.

Sanderson stated that, regardless of purchasers’ higher warning, the corporate was “inspired” to see “bettering resilience” in its funding flows. Purchasers have been allocating funds to plenty of the supervisor’s “lively methods”, designed to assist them navigate the present “difficult atmosphere”.

GAM, which is able to publish its full first-half outcomes on August 3, stated the impairment wouldn’t have an effect on its money place or any client-related or operational capabilities.