GAM Holding AG: Interim management statement for the period to 30 September 2011
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GAM Holding AG /
GAM Holding AG: Interim management statement for the period to 30 September 2011
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Zurich, 25 October 2011
* Group assets under management of CHF 106.4 billion[1], 6% lower than on 30
June 2011, reflecting the steep market declines experienced in third quarter
as well as net new money outflows.
* Reduction in carrying value of participation in Artio Global Investors Inc.
anticipated at year-end 2011.
* Balance sheet strength retained with tangible equity of CHF 840.2 million.
The Group reported assets under management of CHF 106.4 billion[1] as at 30
September 2011, a decline of 6% compared to 30 June 2011. The reduction resulted
from negative market movements, which were only partially offset by the positive
currency effect of the weakening Swiss franc following the Swiss National Bank's
intervention during the quarter.
In addition, continued market uncertainty significantly dampened investment
activity across the industry. Inflows from wholesale intermediary channels in
particular slowed markedly in both operating businesses. Combined with a
substantial de-risking of client portfolios and the lacklustre performance
recently recorded by certain strategies, this led to net outflows for the Group
in third quarter.
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."
Q3 developments at GAM
GAM's assets under management amounted to CHF 46.3 billion at the end of
September, compared with CHF 50.7 billion as at 30 June 2011. The decrease was
due to negative market movements as well as net new money outflows.
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. While withdrawals from wholesale channels were not
concentrated in particular strategies and, on an individual level, were not
significant, the overall impact was negative. In the institutional business,
inflows in alternative single and multi-manager strategies partly offset
divestments from long-only mandates.
GAM continued to broaden its product offering and launched three new UCITS
equity funds in the quarter which aim to address upcoming investment
opportunities. One fund focuses on 'quality' companies well-positioned for a
low-growth environment, while the two other funds invest in equities of growing
emerging market economies.
Q3 developments at Swiss & Global Asset Management
Swiss & Global Asset Management reported assets under management of CHF 75.7
billion as at 30 September 2011, down from CHF 79.6 billion at the end of June,
predominantly due to market-related movements. Year-to-date, net new money
inflows for Swiss & Global Asset Management remained marginally positive,
despite a negative third quarter.
Market conditions and sentiment supported demand for Swiss & Global Asset
Management's physical precious metal funds which continued to see inflows.
Encouragingly, net inflows were also reported in equity funds, on the back of
the strong investment performance achieved by certain strategies. These positive
developments, however, could not offset outflows in other areas. Fixed income
funds, including the products advised by GAM, were negatively affected by the
turmoil in global markets and, after having been in high demand for around 18
months, experienced some outflows during the quarter. The private label business
also recorded net outflows, as the funds of Swiss & Global Asset Management's
private labelling clients suffered from redemptions.
Update on Group financial results
Despite continued cost discipline, underlying profitability declined in third
quarter, and net fee and commission income and performance fees are expected to
remain subdued for the remainder of 2011.
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.
Balance sheet and capital management
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).
The tangible equity position includes the retained 28% investment in Artio
Global Investors Inc. As required under IFRS, the value of this investment is
reviewed on a regular basis. Based on recent trading statements issued by Artio
and the development of its share price the Group anticipates that a further
reduction in the carrying value of the stake will be required. This would lead
to a non-cash charge in fourth quarter, impacting the Group's full-year results
as reported under IFRS.
Under its current share buy-back programme as at 24 October 2011, the Group
repurchased 7.4 million shares (3.8% of outstanding shares) for cancellation.
The Group further submitted a request to the Swiss Takeover Board to transfer up
to a maximum of four million shares currently held in treasury into its buy-back
programme. Subject to regulatory and shareholder approval, this move will allow
the Group to cancel the shares transferred along with those repurchased via the
second trading line of the SIX Swiss Exchange.
GAM Holding AG will publish its full-year 2011 results on 6 March 2012.
For further information please contact:
Media Relations:
Larissa Alghisi Rubner, GAM Holding AG
T: +41 (0) 58 426 62 15
Investor Relations:
Thomas Schneckenburger, Bluechip Financial Communications
T: +41 (0) 44 256 88 33
About GAM Holding AG
GAM Holding AG is an independent, well-diversified asset management group. Its
operating businesses - GAM and Swiss & Global Asset Management - focus on the
manufacturing and distribution of actively managed investment products and
services.
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 assets under
management of CHF 106.4 billion (as at 30 September 2011) and employs over
1,000 staff with offices in Zurich (head office), Bermuda, Grand Cayman, Dubai,
Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Milan, New
York and Tokyo.
[1] Excludes CHF 15.7 billion from funds advised by GAM and distributed by Swiss
& Global Asset Management.
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GAM Holding AG
Klausstrasse 10 Zürich Switzerland
ISIN: CH0102659627;
Press Release:
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Source: GAM Holding AG via Thomson Reuters ONE
[HUG#1557449]
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 79961
Anzahl Zeichen: 8647
contact information:
Town:
Zürich
Kategorie:
Business News
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