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GAM absolute return fund range has record first half
by Dylan Lobo on Aug 13, 2013 at 08:11
GAM Holdings registered a 58% rise in first half profit as its absolute return fund range experienced record demand.
Underlying profit rose to Chf 111.7 million (£78 million) over the period helped by the sale of its stake in US-based Artio, which realised a Chf 13.1 million gain.
Assets under management rose by Chf 0.4 billion to Chf 116.6 billion with the market correction in June erasing much of the growth of the first five months of the year.
Net outflows stood at Chf 0.6 billion, which the group attributed to the loss of a one-off equity mandate and 'atypical' outflows in private labelling.
However, amid the market uncertainty GAM's absolute return single manager range enjoyed record inflows, netting the group Chf 70.9 million in performance fees, a significant increase on the Chf 29.4 million it raised during the corresponding period of 2012.
The range includes the top performing GAM Star Emerging Market Rates Alternative Ucits fund, run by Paul McNamara (pictured), Denise Prime and Caroline Gorman, which has returned 11.3% in the three years to 12 August versus a 6% gain in the benchmark.
GAM also said the Julius Baer branded Japan and Luxury Brands funds and the GAM China , Continental European , North American and Technology strategies experienced high demand, along with its unconstrained fixed income funds.
Meanwhile GAM described inflows into its UK discretionary business for financial advisers, headed by Charles Hepworth and James McDaid, as 'modest', although it expected the business to make more 'meaningful' contributions over the next few years.
Commenting on his firm's performance GAM chief executive David Solo said: 'The sharp market correction in June has not impacted the confidence we have in the future of our group.
'The trends we saw in the first half of the year indicate that investors are reassessing their portfolio allocations, preferring alternative fixed income strategies to traditional ones, seeking quality absolute return products, and slowly but steadily regaining their appetite for equity investments.'
He added: 'We are firmly convinced that, against the persistent backdrop of slow economic growth, negative real yields and highly volatile equity markets, active management will prove its value. Clients cannot rely on 'easy' solutions to grow or safeguard their wealth'
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- Julius Baer EF Japan-JPY C
- Julius Baer EF Luxury Brands-GBP B
- GAM Star China Equity GBP Ordinary Class Acc
- GAM Star Continental European Equity GBP Acc
- GAM North American Growth Acc
- GAM Star Technology GBP Acc
- GAM Star Emerging Market Rates GBP Acc
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On the road
by Danielle Levy on Dec 04, 2013 at 11:37