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GAM reverses ‘protracted’ six-year wealth decline

GAM reverses ‘protracted’ six-year wealth decline

Asset under management in GAM’s wealth management business grew for the first time in six years.

The news was revealed in the firm’s half-year report and justifies it decision to hire Charles Hepworth (pictured) and James McDaid from Quilter in 2012. GAM launched a five-strong model portfolio range in February 2013 for the pair as part of its ambition to grow its presence in the UK wealth management market.

In a statement accompanying the results the firm said: ‘Assets in discretionary and advisory portfolios…grew during the reporting period - for the first time after a protracted decline over the past six years.'

It added: ‘This reflects the growing success of GAM's discretionary fund management service launched in 2012. As anticipated, inflows into its risk-rated model portfolios for independent financial advisers now more than compensated for the redemptions by private clients of GAM's previous owners.’

Meanwhile the firm’s investment management business saw assets under management rise by Chf3.6 billion (£2.4 billion) in the six months to the end of June to stand at Chf73.4 billion.

Net inflows for the period stood at Chf 1.3 billion,  which included ‘strong’ contributions from its credit opportunities and catastrophe bond strategies, alongside the Julius Baer-branded European asset-backed securities strategy.

GAM was also boosted by an improved sentiment towards emerging markets with it technology and 30-year North American equity strategies playing their part in first half performance.

Commenting on the numbers, GAM chief executive David Solo said: "Our efforts to create a leading independent asset management group are paying off.

‘Growth in our core investment management business, with broadly diversified net new money inflows, robust profitability and a solid balance sheet combine to create a healthy and strongly positioned group.’  

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