27 Oct 2011
Inflows in alternative single and multi-manager strategies partly offset divestments from long-only mandates as GAM Holding reported that first half assets under management fell 6% to CHF1.6.4 billion. The Swiss-based investment manager blamed steep market declines in the third quarter and net new money outflows for the decline in AUM.
During Q3, attrition from GAM's historic private banking partners slowed, but in contrast to the first half of the year, these outflows were not counteracted by inflows elsewhere. Widespread risk aversion led to a sell-off of liquid assets globally, also affecting GAM's funds.
Swiss & Global Asset Management reported AUM of CHF 75.7 billion as at 30 September 2011, down from CHF 79.6 billion at the end of June, which they attribute to market-related movements. Year-to-date, net new money inflows for Swiss & Global Asset Management remained marginally positive, despite a negative third quarter.
The decrease in GAM Holding AG's share price led to hedging losses and lower tax deductions related to share-based compensation during the quarter. The tax rate for the full-year could range between 22% and 24%, subject to future share price developments.
The Group's balance sheet remains strong, with tangible equity of CHF 840.2 million and a cash position of CHF 660.9 million as at 30 September 2011 (CHF 821.6 million and CHF 644.3 million at the end of June 2011).
Johannes A. de Gier, Chairman and CEO, said: "In this unsettling climate of market volatility and overriding concerns about macro economic developments and the impact of political decisions, our attention is fully focused on maintaining a strong, long-term performance track record and ensuring an effective dialogue with our clients. Across client segments, our relationships and franchise remain solid, and this will benefit our businesses once market conditions improve."
During Q3, attrition from GAM's historic private banking partners slowed, but in contrast to the first half of the year, these outflows were not counteracted by inflows elsewhere. Widespread risk aversion led to a sell-off of liquid assets globally, also affecting GAM's funds.
Swiss & Global Asset Management reported AUM of CHF 75.7 billion as at 30 September 2011, down from CHF 79.6 billion at the end of June, which they attribute to market-related movements. Year-to-date, net new money inflows for Swiss & Global Asset Management remained marginally positive, despite a negative third quarter.
The decrease in GAM Holding AG's share price led to hedging losses and lower tax deductions related to share-based compensation during the quarter. The tax rate for the full-year could range between 22% and 24%, subject to future share price developments.
The Group's balance sheet remains strong, with tangible equity of CHF 840.2 million and a cash position of CHF 660.9 million as at 30 September 2011 (CHF 821.6 million and CHF 644.3 million at the end of June 2011).
