Swiss money manager GAM Holding has registered underlying net profit of CHF158.4m for the year ended 31 December 2015, a fall of 11% from CHF177.2m a year ago.
The group’s underlying pre-tax profit fell 9% to CHF197.8m from CHF216.7m in 2014.
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The IFRS net profit of CHF138.3m, all attributable to the shareholders of GAM Holding AG, was down 18% compared to CHF169m a year earlier as a result of a reorganisation charge and other nonrecurring and acquisition-related items.
Income for the full year of 2015 stood at CHF601.3m, a decline of 4% year-on-year, while net fee and commission income down 1% to CHF600.6m from CHF608.8m a year ago, of which net performance fees up 26% to CHF82.8m.
Operating expenses were down 1% to CHF403.5m from CHF406.8m in 2014 with both personnel and general expenses lower.
The group recorded assets under management of CHF119bn as of 31 December 2015 compared to CHF123.2bn as at 31 December 2014.
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Assets under management in investment management as at 31 December 2015 decreased 5% to CHF72.3bn, compared to CHF76.1bn at year end 2014 reflecting negative market and foreign exchange movements.
The unit posted net inflows of CHF0.3bn in 2015.
Assets under management in the group’s private labelling unit were down 1% to CHF46.7bn from CHF47.1bn a year earlier, reflecting sale of the Cayman business.
Additionally, Larry Hatheway, group chief economist and group head of multi asset portfolio solutions, and Tim Dana, group head of corporate development, will join the Group Management Board on 1 May 2016, subject to the customary regulatory approval, while Andrew Hanges, region head UK, will step down from the Group Management Board.
Group CEO Alexander S. Friedman said: "The work we undertook in 2015 is not yet fully visible in our financial results. The transition we embarked on is proceeding on schedule and will give GAM a solid foundation for future profitable growth.
"Following the strategic steps initiated in 2015, we are focused on executing against our plans, and we have a number of exciting product launches in the pipeline."
GAM said that the implementation of the new operating model will lead to a structural annual cost reduction of more than CHF20m by 2017 compared with the 2014 level.
