GAM Holding AG: Interim management statement for the period to 30 September 2013
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GAM Holding AG /
GAM Holding AG: Interim management statement for the period to 30 September 2013
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The issuer is solely responsible for the content of this announcement.
Zurich, 22 October 2013
* Investment management assets under management of CHF 72.1 billion
* Modest net new money inflows and strong positive market performance in
the third quarter largely offset by adverse foreign exchange movements
* Private labelling assets under management of CHF 44.5 billion
* Net new money outflows and negative currency impact in the third quarter
offsetting positive market performance
* Tangible equity up 9% from 30 June 2013, at CHF 518.4 million, reflecting
robust profitability and lower share buy-backs
* New functional organisation in place, co-location of teams to be completed
by year-end
Total assets under management across investment management and private labelling
were flat compared to 30 June 2013, at CHF 116.6 billion, as the weakening of
the US dollar by almost 5% against the Group's Swiss franc reporting currency
offset the significant rebound in market performance experienced in the third
quarter.
Investment management
The deterioration in the US dollar exchange rate particularly affected assets in
investment management, causing them to remain unchanged from 30 June 2013 at CHF
72.1 billion.
Total net new money inflows were very modest reflecting varying developments
across different product segments. Outflows were mainly experienced in emerging
market debt and lower-margin products - such as the physical gold ETFs and
certain Swiss institutional assets - while many higher-margin areas continued to
attract strong net inflows. This had a positive impact on the overall asset mix,
improving annualised return on assets.
Net new money results include a sizeable allocation from a public pension fund
in the US to GAM's alternative investments solutions, reflecting the Group's
success in repositioning its experience in managing hedge fund portfolios to
cater to institutional clients. Inflows into GAM's single manager products,
particularly in the alternative spectrum, continued to be robust. After an
initial recovery in the first half, client demand for the Julius Baer-branded
equity funds picked up notably in the third quarter, leading to an increase in
net new money inflows.
Given the significant market reaction to the 'taper discussion' with respect to
the US Federal Reserve's policy of quantitative easing, the physical gold fund,
emerging market and traditional fixed income products, as well as low-margin
money market funds, experienced redemptions, in line with broad market trends.
GAM's unconstrained/absolute return fixed income strategies, on the other hand,
saw continued net inflows. Redemptions from wholesale intermediaries in
Continental Europe (where these strategies are distributed under the Julius Baer
brand) were more than offset by sustained and strong inflows from global
institutional clients, demonstrating the importance of the Group's broad
diversification across regions and client segments. In addition, performance of
the unconstrained/absolute return fixed income strategies improved by the end of
the quarter and remains attractive in absolute terms and relative to peers.
Private labelling
Private labelling - the area providing outsourcing solutions to third parties
and contributing around 6% of the Group's revenues - ended the quarter with
assets under management of CHF 44.5 billion. Asset levels were flat from 30 June
2013 as positive market performance was offset by currency movements and net new
money outflows. The latter were mainly driven by outflows from third-party
managed money market funds as well as closures and redemptions of offshore
funds. As discussed previously growth in this business, at least over the short
term, is proving less predictable than anticipated, primarily due to the fact
that European regulation of onshore funds - one important driver of the client
proposition - is still evolving.
Update on tangible equity and share buy-back programme
Tangible equity as at 30 September 2013 was CHF 518.4 million, up 9% or CHF
41.7 million compared to 30 June 2013. This reflects continued levels of robust
profitability across the Group's businesses as well as a decline in its share
buy-backs over the second trading line.
Under its 2011-14 share buy-back programme, in the third quarter of 2013 the
Group bought back 325,000 own shares for cancellation (CHF 4.93 million, at an
average price of CHF 15.17). The reduction of buy-back volumes from previous
periods, when repurchases were used to return excess capital to shareholders, is
in line with the Group's capital management strategy as communicated at its
half-year results presentation.
While management will use buy-backs to retain flexibility in returning cash and
capital to shareholders, the Group intends to place a stronger emphasis on
dividends. It anticipates adhering to its historical dividend pay-out ratio of
approximately 50% of its underlying net profit, based on its expectations of the
sustainability of near-term earnings.
New functional Group organisation in place
With the integration of a number of teams at GAM and Swiss & Global Asset
Management, the Group's functional organisation has now been largely
implemented. The distribution and marketing teams across the globe, for
instance, have been brought together under joint leadership, while the HR,
finance and legal and compliance functions have been fully integrated at the
Group level.
The Group has also started to consolidate its office space in London and Zurich,
where it employs 378 and 353 people respectively, giving up historic locations
in both cities (12 St. James's Place and Klausstrasse 10) and co-locating teams
according to functions. This process will be completed by year-end 2013.
Forthcoming events:
4 Mar 2014 Full-year results 2013
15 Apr 2014 Ordinary Annual General Meeting & Interim management statement Q1
2014
12 Aug 2014 Half-year results 2014
For further information please contact:
Media Relations: Investor Relations:
Larissa Alghisi Rubner Patrick Zuppiger
T: +41 (0) 58 426 62 15 T: +41 (0) 58 426 31 36
About GAM Holding AG
GAM Holding AG is an independent, pure-play asset management group with a focus
on active investing. With global distribution networks and investment teams
based in five investment centres in Europe, the US and Asia, it delivers
investment solutions to institutions, intermediaries and private clients through
two leading brands - Julius Baer Funds (distributed by Swiss & Global Asset
Management) and GAM. The Group's investment management business, with assets
under management of CHF 72.1 billion(1), is complemented by a private labelling
unit which provides outsourcing solutions for third-party assets totalling CHF
44.5 billion(1).
Headquartered in Zurich, GAM Holding AG is listed on the SIX Swiss Exchange and
is a component of the Swiss Market Index Mid (SMIM) with the symbol "GAM". The
Group has total assets under management of CHF 116.6 billion(1) and employs over
1,000 staff with offices in 10 countries.
(1) As at 30 September 2013.
Disclaimer regarding forward-looking statements
This press release by GAM Holding AG ('the Company') includes forward-looking
statements that reflect the Company's intentions, beliefs or current
expectations and projections about the Company's future results of operations,
financial condition, liquidity, performance, prospects, strategies,
opportunities and the industry in which it operates. Forward-looking statements
involve all matters that are not historical facts. The Company has tried to
identify those forward-looking statements by using words such as 'may', 'will',
'would', 'should', 'expect', 'intend', 'estimate', 'anticipate', 'project',
'believe', 'seek', 'plan', 'predict', 'continue' and similar expressions. Such
statements are made on the basis of assumptions and expectations which, although
the Company believes them to be reasonable at this time, may prove to be
erroneous.
These forward-looking statements are subject to risks, uncertainties,
assumptions and other factors that could cause the Company's actual results of
operations, financial condition, liquidity, performance, prospects or
opportunities, as well as those of the markets it serves or intends to serve, to
differ materially from those expressed in, or suggested by, these forward-
looking statements. Important factors that could cause those differences
include, but are not limited to: changing business or other market conditions,
legislative, fiscal and regulatory developments, general economic conditions,
and the Company's ability to respond to trends in the financial services
industry. Additional factors could cause actual results, performance or
achievements to differ materially. The Company expressly disclaims any
obligation or undertaking to release any update of or revisions to any forward-
looking statements in this press release and any change in the Company's
expectations or any change in events, conditions or circumstances on which these
forward-looking statements are based, except as required by applicable law or
regulation.
English Press Release :
http://hugin.info/142256/R/1737101/582332.pdf
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Source: GAM Holding AG via Thomson Reuters ONE
[HUG#1737101]
Unternehmensinformation / Kurzprofil:
Datum: 22.10.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 307830
Anzahl Zeichen: 11197
contact information:
Town:
Zürich
Kategorie:
Business News
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