Swiss money manager GAM Holding has reported that assets under management (AuM) in its investment management unit declined to CHF72.4bn in the third quarter of 2015 compared with CHF73.5bn as of 30 June 2015 due to negative market performance.
For the three-month period ended 30 September 2015, net inflows and the positive effect from foreign exchange movements were more than offset by negative market performance.
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The group has recorded strong net inflows in absolute return products, particularly in European long-short equity as well as in global macro strategies.
GAM said that specialist fixed income strategies continued to contribute inflows, while inflows were more than offset by outflows from emerging market fixed income products due to investor sentiment.
Assets under management in the group’s private labelling unit decreased to CHF47.1bn, down 7.1% from 30 June 2015, reflecting the loss of one mandate.
The company is planning to launch a redesigned brand in mid-November to build the Group’s external recognition and reflect its new integrated operational structure.
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By GlobalDataThe restructuring will result in a structural annual cost reduction of over 5% by 2017. The overall restructuring costs of the strategic repositioning will not exceed CHF13m in 2015.
For the third quarter of 2015, GAM has bought back a total of 1.52 million of its own shares, costing CHF27.3m, including 1.16 million shares for cancellation under its current share buy-back programme.
GAM Group CEO Alexander Friedman said: "Markets in the third quarter reacted negatively to further growth fears in China and across other developed and emerging markets. 2015 is a year of transition for GAM, and notwithstanding adverse market conditions, I am confident the investments we are making in our business position the company for attractive future growth."
