Swiss money manager GAM Holding has reported underlying net profit of CHF94.2m for the year ended 31 December 2016, a decline of 41% compared to CHF158.4m in the prior year.

The group's underlying pre-tax profit was CHF120.1m, a 39% slump from CHF197.8m a year ago.

The IFRS net profit of CHF134.3m, all attributable to the shareholders of GAM Holding, dropped 3% from CHF138.3m last year.

Income for the full year of 2016 stood at CHF478.6m, a 20% decrease from CHF601.3m in the previous year. Net fee and commission income plummeted 21% year-on-year to CHF 473.5m.

Expenses during the period were CHF358.5m, a fall of 11% from CHF403.5m last year.

Investment management

Assets under management in investment management as at 31 December 2016 were CHF68.2bn, compared to CHF72.3bn in 2015.

Assets under management in the group's private labelling unit increased to CHF52.5bn in 2016 from CHF46.7bn a year ago.

GAM group CEO Alexander Friedman said: “We are committed to increasing diluted underlying earnings per share in excess of 10% on an annualised basis and achieving an operating margin of 35-40%, both over the five to eight-year business cycle. Our policy of progressive, predictable and sustainable dividends remains unchanged.”