GAM Holding AG: Interim management statement for the three-month period to 30 September 2017
(Thomson Reuters ONE) -
GAM Holding AG /
GAM Holding AG: Interim management statement for the three-month period to 30
September 2017
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The issuer is solely responsible for the content of this announcement.
* Group assets under management up 13% to CHF 148.4 billion from 30 June 2017
and up 23% in the first nine months of 2017
* Total net inflows of CHF 11.8 billion
* Investment management:
* Assets under management of CHF 78.7 billion, up 9% from 30 June 2017,
driven by strong net inflows, positive investment performance and
foreign exchange movements
* Net inflows of CHF 3.5 billion, with, in particular, strong flows into
fixed income strategies
* Private labelling:
* Assets under management of CHF 69.7 billion, up 18% from 30 June 2017,
driven by strong net inflows
* Net inflows of CHF 8.3 billion
* GAM to absorb all research costs following the implementation of MiFID II in
January 2018
* Multi-year change programme to deliver significant operating efficiencies
progressing well
Group CEO Alexander S. Friedman said: "I am pleased with our continued momentum
in the third quarter: the investment performance for the vast majority of our
funds was strong, our net inflows were very good, and we remain on track with
our strategic initiatives. We continue to see healthy client interest for our
products, although we do not expect the pace of third-quarter inflows to be
consistently maintained. Our focus remains on providing excellent investment
performance in differentiated strategies that meet our clients' needs,
disciplined execution of our growth strategy and ensuring we make GAM as
efficient as possible."
Investment management
Assets under management increased to CHF 78.7 billion from CHF 72.2 billion as
at 30 June 2017, driven by strong net inflows, positive investment performance
and foreign exchange movements.
Assets under management movements (CHF bn)
Capability Opening AuM Net flows Market FX movements Closing AuM
30 June movements 30 September
2017 2017
-------------------------------------------------------------------------------
Absolute return 16.1 (0.6) 0.1 0.5 16.1
-------------------------------------------------------------------------------
Fixed income 27.4 4.1 0.3 0.6 32.4
-------------------------------------------------------------------------------
Equity 11.0 0.1 0.5 0.3 11.9
-------------------------------------------------------------------------------
Systematic 3.7 0.1 0.2 0.1 4.1
-------------------------------------------------------------------------------
Multi asset 9.1 (0.1) 0.1 0.1 9.2
-------------------------------------------------------------------------------
Alternatives 4.9 (0.1) 0.1 0.1 5.0
-------------------------------------------------------------------------------
Total 72.2 3.5 1.3 1.7 78.7
-------------------------------------------------------------------------------
Investment performance continued to improve, with 75% of investment management
assets in funds outperforming their respective benchmark over the three-year
period to 30 September 2017 (71% as at 30 June 2017). Over the five-year period,
72% of assets in funds were outperforming (72% as at 30 June 2017).
Absolute return strategies had net outflows of CHF 0.6 billion as inflows into
the GAM Star Global Rates and the GAM Star (Lux) - Merger Arbitrage were offset
by outflows from the unconstrained/absolute return bond strategy, although this
strategy has a strong pipeline.
In fixed income, net inflows totalled CHF 4.1 billion. The GAM Star Credit
Opportunities strategy, which predominantly invests in debt of investment grade
or high quality issuers, attracted strong inflows. The GAM Local Emerging Bond
fund, which invests in debt of emerging countries denominated or pegged to the
respective local currency and the GAM Star MBS Total Return fund, also recorded
good inflows.
In equity, net inflows totalled CHF 0.1 billion, driven by inflows into the GAM
Star Continental European Equity fund, partly offset by redemptions from the GAM
UK Diversified, GAM Japan Equity and GAM Star China Equity funds.
Systematic strategies saw net inflows of CHF 0.1 billion, driven by inflows into
the GAM Systematic Alternative Risk Premia fund and related mandates.
Multi asset strategies experienced net outflows of CHF 0.1 billion, reflecting
redemptions in the private client advisory business.
Net outflows of CHF 0.1 billion in alternatives largely reflected redemptions in
the fund of hedge funds business.
Private labelling
Assets under management movements (CHF bn)
Fund domicile Opening AuM Net flows Market/FX movements Closing AuM
30 June 2017 30 September 2017
----------------------------------------------------------------------------
Switzerland 33.1 (0.6) 1.0 33.5
----------------------------------------------------------------------------
Rest of Europe 26.0 8.9 1.3 36.2
----------------------------------------------------------------------------
Total 59.1 8.3 2.3 69.7
----------------------------------------------------------------------------
Assets under management in private labelling, which provides fund solutions for
third parties, rose to CHF 69.7 billion from CHF 59.1 billion as at 30 June
2017, driven by net inflows of CHF 8.3 billion. The majority of inflows came
from an existing client with a below average management fee margin.
Update on strategic initiatives
In September GAM hired Adrian Gosden, a highly regarded UK investor, as
investment director. A new UK equity income fund will be launched later this
year. GAM also continued to strengthen its distribution capabilities with the
hire of Shizu Kishimoto to lead its sales and overall business operations in
Japan.
The Group's multi-year change programme to deliver significant operating
efficiencies is progressing well, with the new single data architecture provider
selected and implementation underway.
GAM has decided to absorb all research costs from January 2018, following the
implementation of the new Markets in Financial Instruments Directive (MiFID II).
This underlines GAM's commitment to placing clients' interests first, while
ensuring sustainable growth for all stakeholders. GAM currently expects research
costs to amount to mid-single-digit CHF millions per annum.
Outlook
Strong investment performance across the vast majority of GAM's product range
and the strengthening of distribution capabilities should continue to help
support future net inflows. The Group's key priorities remain delivering
operating efficiencies and achieving its targets over the business cycle.
The Board of Directors is making good progress on its comprehensive review of
the Group's compensation policies and structures and expects to update the
market prior to the release of 2017 full-year results.
Forthcoming events:
1 March 2018 Full-year results 2017
19 April 2018 Interim management statement Q1 2018
26 April 2018 Annual General Meeting 2018
For further information please contact:
Media Relations: Investor Relations:
Elena Logutenkova Patrick Zuppiger
T +41 (0) 58 426 63 41 T +41 (0) 58 426 31 36
Visit us at: www.gam.com
Follow us on: Twitter and LinkedIn
About GAM
GAM is one of the world's leading independent, pure-play asset managers. The
company provides active investment solutions and products for institutions,
financial intermediaries and private investors. The core investment business is
complemented by private labelling services, which include management company and
other support services to third-party asset managers. GAM employs over 900
people in 13 countries with investment centres in London, Cambridge, Zurich,
Hong Kong, New York, Milan and Lugano. The investment managers are supported by
an extensive global distribution network.
Headquartered in Zurich, GAM 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 assets under management of CHF 148.4 billion (USD 153.3 billion) as at 30
September 2017.
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/2142823/820907.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: GAM Holding AG via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.10.2017 - 07:00 Uhr
Sprache: Deutsch
News-ID 564284
Anzahl Zeichen: 12698
contact information:
Town:
Zürich
Kategorie:
Business News
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