Companies and economies around the world continued to feel the effects of the coronavirus-enforced lockdowns during the second half of 2020. Investment Week reports on how they have done since then.
GAM Holdings AG
GAM Holdings saw "materially lower outflows" in Q2 than the previous quarter, as it looks to take "important steps in mobilising GAM for growth for the benefit of our shareholders".
The Swiss firm said its investment management business saw outflows of CHF2bn in Q2, down from CHF6.5bn in Q1, resulting in assets under management (AUM) of CHF35.5bn as at 30 June, down from CHF48.4bn on 31 December 2019.
Further, the division saw a drop in management fee margin in H1 to 51.3 basis points, compared to 54.2 basis points in the 2019 full year.
Group CEO Peter Sanderson said the firm's strategies' investment performance had been "improving", while the significant upgrade of the firm's technology infrastructure and building out of its distribution team would help position the firm for growth.
Jeremy Roberts will join GAM in 1 September as head of distribution, working alongside a newly created role of head of institutional solutions to lead the company's sales and distribution efforts.
"Clients are looking for investment themes which transcend the current economic outlook and GAM is well positioned to provide these with our specialist actively managed strategies," Sanderson said.
"I believe that our products together with a more efficient platform offer significant avenues for GAM to grow."
GAM further said was on course to deliver costs savings of "at least" CHF65m in the full year 2020 as well as "further simplification of the business with additional opportunities for efficiency gains in FY 2021 and FY 2022".
With employees having been working from home since mid-March, GAM added it would roll out "a new flexible and agile way of working in Q3 2020, which will further enhance our collaborative working environment".
Amundi
French asset management firm Amundi saw its total revenue in H1 fall by 7.2% year-on-year during H1 2020 due to the "strong negative market effect", according to its interim results, while outflows from products stood at €4bn, which was chiefly driven by clients exiting Treasury-related products.
While some €10.2bn was redeemed from Treasury funds by corporate clients between March and May, "medium-to-long-term assets" saw inflows of €6.2bn - €5.5bn of which was into the firm's ETF and smart beta vehicles during Q2 alone.
Overall, assets under management grew by 7% year-on-year to €1,592bn, and the firm managed to reduce its operating expenses by 7.8% during Q2 of this year, while "continuing to hire for growth".
Amundi also finalised its acquisition of Banco Sabadell Asset Management - which was first announced on 21 January - on 30 June 2020, and has renewed its partnership with French investment bank Société Générale for a further five years.
A spokesperson for the company said there has been a "good level of business activity and earnings" over the course of H1.
"Despite an unfavourable market environment, Amundi's business activity and earnings were solid in the second quarter, which proves the company's business model is sound," they said.
"The partnership with Société Générale has been renewed in all its aspects, which strengthens Amundi's position as a reference partner of the Retail networks in Europe."