Embattled Swiss asset manager Gam Investments reported net outflows in the first quarter as it confirmed that the liquidation of funds connected to a scandal at the firm would be completed this summer.
Net outflows were SFr 2.1bn (£1.6bn) in the first three months of the year, while assets under management increased from SFr 132.2bn at the end of 2018 to SFr 137.4bn.
The Zurich-based firm saw huge outflows last year after suspending star fund manager Tim Haywood after a review uncovered risk management and record keeping issues.
Haywood, who looked after absolute return bond funds (ARBF), was sacked in February.
The company confirmed this morning that the liquidation of the funds would be completed by mid-July, and added that it was “fully on-track” with a restructuring and cost-savings plan.
David Jacob, group chief executive, said: “While the investment performance over a three- and five-year period has improved, first quarter net flows continued to be impacted by ARBF-related matters.
“Having now sold all but the final group of material assets and with an agreement in place which leads to the sale of them as well, we look forward to putting this difficult period behind us.
“Our priority during the liquidation process has been to maximise liquidity and value for clients, while ensuring fair treatment for all.
“I would like to thank our clients for their patience, as we continue to work hard to return their assets.
“Our full focus remains on rebuilding Gam as a leading active asset manager, known for its differentiated product offering and strengthening the company for our shareholders.”