Group CEO Alexander S. Friedman said: “The good momentum we had in 2017 continued into the first quarter. Our investment strategies continued to deliver strong performance, our net inflows across a broad range of products were solid, and we are on track with our strategic initiatives. Our focus remains on the diligent execution of our strategic plan, predicated on offering our clients performing and differentiated products, strengthening our distribution, and improving operating efficiency along with effective risk management.
We continue to see good demand for specialised products that offer diversification versus traditional asset classes and broad market trends. Nevertheless, market volatility has increased noticeably over the last few months, which may lead clients to become more cautious.”
Assets under management increased to CHF 85.7 billion from CHF 84.4 billion as at 31 December 2017, driven by strong net inflows, partly offset by negative market and foreign exchange movements.
Investment performance continued to improve, with 82% of investment management assets in funds outperforming their respective benchmark over the three-year period to 31 March 2018 (77% as at 31 December 2017). Over the five-year period, 74% of assets in funds were outperforming (56% as at 31 December 2017).
Assets under management movements (CHF bn)
In absolute return, the unconstrained/absolute return bond strategy continued to attract positive inflows. However, the GAM Absolute Return Europe Equity and the GAM Star Global Rates funds had redemptions following a period of weaker performance. Overall, investors withdrew net CHF 0.1 billion from GAM’s absolute return strategies.
In fixed income, GAM’s specialist product offering continued to be a key driver of inflows, totalling CHF 2.1 billion. The GAM Star Credit Opportunities strategy, the GAM Local Emerging Bond fund, and the GAM Star MBS Total Return fund, all attracted strong inflows.
In equity, the GAM Emerging Markets Equity and the GAM Star Continental European Equity funds attracted good net inflows, while some regional strategies recorded redemptions. Overall, investors added net CHF 0.1 billion to GAM’s equity funds.
In systematic strategies, GAM attracted net inflows of CHF 0.5 billion into its alternative risk premia strategy and the CCP Core Macro Fund.
Multi asset strategies experienced net outflows of CHF 0.1 billion, reflecting redemptions from private clients.
In alternatives, the GAM Select fund of hedge funds and the GAM Physical Gold strategy attracted small inflows, which were offset by redemptions in other fund of hedge funds strategies.
Assets under management in private labelling, which provides management company services for third parties, rose to CHF 76.6 billion from CHF 74.3 billion as at 31 December 2017. Net inflows amounted to CHF 3.5 billion, while market and foreign exchange movements led to a CHF 1.2 billion decrease in assets under management.
Assets under management movements (CHF bn)
GAM is progressing well with its multi-year change programme to optimise efficiency and create a robust, scalable operating platform aligned with its growth ambitions.
GAM launched an insurance-linked securities strategy at the end of March, and has extended its range of private debt products through a partnership with Kimura Capital LLP in commodity trade finance strategies. There is a strong pipeline of other fund launches planned for the near term, including an equity fund focused on Europe, Australasia and the Far East (EAFE), a global income fund and a global equity long only systematic strategy.
The markets have become more volatile and challenging for investors in 2018, which may lead clients to become more cautious. The Group continues to see good demand for its differentiated products that offer diversification versus traditional asset classes and broad market trends. The Group’s focus remains on delivering on its strategic priorities and achieving its targets over the business cycle.
|26 April 2018||Annual General Meeting|
|30 April 2018||Ex-dividend date|
|2 May 2018||Dividend record date|
|3 May 2018||Dividend payment date|
|31 July 2018||Half-year results 2018|
|23 October 2018||Interim management statement Q3 2018|
T: +41 (0) 58 426 63 41
T: +41 (0) 58 426 31 36
Visit us at: www.gam.com
GAM is one of the world’s leading independent, pure-play asset managers. The company provides active investment solutions and products for institutions, financial intermediaries and private investors. The core investment business is complemented by private labelling services, which include management company and other support services to third-party asset managers. GAM employs over 900 people in 13 countries with investment centres in London, Cambridge, Zurich, Hong Kong, New York, Milan and Lugano. The investment managers are supported by an extensive global distribution network.
Headquartered in Zurich, GAM is listed on the SIX Swiss Exchange and is a component of the Swiss Market Index Mid (SMIM) with the symbol ‘GAM’. The Group has assets under management of CHF 162.3 billion (USD 169.4 billion) as at 31 March 2018.
This press release by GAM Holding AG (‘the Company’) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industry in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using words such as ‘may’, ‘will’, ‘would’, ‘should’, ‘expect’, ‘intend’, ‘estimate’, ‘anticipate’, ‘project’, ‘believe’, ‘seek’, ‘plan’, ‘predict’, ‘continue’ and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous.
These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. The Company expressly disclaims any obligation or undertaking to release any update of, or revisions to, any forward-looking statements in this press release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.