Swiss money manager GAM Holding has reported underlying net profit of CHF93.1 million for the first half of 2014, a decline of 17% compared with CHF111.7 million a year ago.
Operating income for the first six months of 2014 also dipped 14% to CHF307.4 million from CHF357.4 million at the end of June 2013.
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However, cost/income ratio improved of 63.2% well within mid-term target range of 60-65%, the group said in a statement.
Investment management
Return on assets in investment management for the first half of 2014 was 79.5 basis points, slightly below the 79.7 basis points recorded in the second half of 2013, as average assets under management and total net fee and commission income both declined by 2%.
Assets under management in investment management as at 30 June 2014 were at CHF73.4 billion. They rose by CHF 3.6 billion from year-end 2013, driven by market performance (CHF 2.5 billion) and net new money inflows (CHF 1.3 billion).
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By GlobalDataNet new money inflows for the first six months of the year of CHF1.3 billion were fuelled by strong inflows across the group’s offering. They also include assets of CHF361 million acquired in June 2014 from Singleterry Mansley Asset Management, a US asset and mortgage-backed securities specialist.
GAM Holding CEO David Solo said: "For us it is evident that actively managed solutions will play an essential part in investors’ portfolios over the coming years. Rising geopolitical tensions, the prospects of monetary tightening and the unwinding of Quantitative Easing all create the need for proven active management to navigate the increasingly volatile markets ahead.
"We now have a broad set of active investment capabilities in place, supported by strong track records and an effective distribution platform. From here, our focus lies in promoting our capabilities more actively, through enhanced sales and marketing activities, in order to raise the awareness of our unique investment skills with the leading asset allocators globally."
