GAM has issued a profit warning stating that its full-year 2019 underlying results are expected to be materially lower than last year.

In a release issued last Friday, the Swiss firm said they expect to report an underlying profit before taxes, which excludes non-recurring and acquisition-related items, of approximately CHF 10 million (including approximately CHF 12 million of performance fees) for 2019 compared with CHF 126.7 million (including CHF 4.5 million of performance fees) for 2018.

The expected drop, the firm said, is primarily driven by the decline in assets under management (AuM) and related revenues in inve...