Swiss money manager GAM Holding has registered underlying net profit of CHF81.2m for the first half of 2015, a fall of 13% from the first half of 2014.
Operating income at the group stood at CHF303.6m compared to CHF316.1m in the second half of 2014 reflecting a decline in net fee and commission income and in other operating income.
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Operating expenses were CHF202.1m, up 4% compared to the first half of 2014 due to a non-recurring credit booked in the previous year, higher severance payments and an increase in charges for share-based compensation plans.
Cost/income ratio stood at 66.6% for the first half of 2015, which was just above the Group’s mid-term target range of 60-65%.
Investment management:
Assets under management in investment management as at 30 June 2015 decreased to CHF73.5bn, compared to CHF76.1bn at year end 2014 driven by foreign exchange movements.
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By GlobalDataThe unit posted net new money inflows of CHF2.0bn and a positive market performance of CHF0.8bn.
GAM said that net flows into the Group’s absolute return/unconstrained bond strategy turned positive in the first half of 2015, while flows into directional equity products were largely flat.
The total number of jobs in the Group across all locations is expected to be reduced by nearly 15% over the next 18 months as part of planned restructuring measures.
GAM has also signed an agreement to acquire London-based asset management firm Renshaw Bay’s real estate finance business.
GAM Group CEO Alexander Friedman said: "As we enter the second half of 2015, we have seen the positive underlying momentum in our business continuing. Global monetary policy remains broadly accommodative, even as US rates could begin the path to a gradual normalisation. However, the macroeconomic and political issues that characterised the first half of 2015 are likely to persist."
