Update: GAM shares plunge 30% on 2019 profit warning

Reports losses and plans to scrap 2018 dividend

The share price of embattled Swiss asset manager GAM has fallen by 30% after it revealed a drop in its profits before tax for the 2018 financial year and warned 2019 results will also be negatively affected, as it embarks on a major restructuring programme.

GAM has suffered huge share price falls this year as it has been hit by a raft of negative headlines. Its shares are now trading at CHF3.26 on the SIX Swiss Exchange, having fallen by around 80% so far this year. In an estimate of its 2018 results, the Swiss firm reported group assets under management of CHF139.1bn (£110.7bn) as of 30 November, down from CHF146.1bn on 30 September, mainly due to outflows of CHF4.2bn in its investment management division. The largest outflows were seen in its fixed income division, which shed CHF3bn, driven primarily by GAM Star Credit Opportunities an...