GAM Holding said first-half profit will slide to roughly half last year's result after its performance fees suffered a dramatic slide. The asset manager will also spend less on pay schemes following the drop. 

Swiss asset manager GAM, which reports full results on August 3, said it will compensate a dramatic fall in performance and management fees as well as commissions by cutting costs and other spending. 

Performance fees in the first half shrank to 1 million Swiss francs, from 44.1 million francs in the first months of 2015. As a result, GAM expects profit, which was 80.9 million francs in the first six months of 2015, to halve this year.

Strategy on Track

GAM, which is led by former UBS investment chief Alex Friedman, said the implementation of its new operating model is on track. The firm, which acquired Taube Hodson Stonex last month, said it will continue to expand by acquiring for its core investment management activities while developing new products like trade finance, absolute return and real estate debt.

The asset manager has been struggling with dwindling assets and lower activity as market uncertainty hits clients' appetite for risk.