Gam reports marginal rise in AUM

Gam has seen its assets under management rise to SFr53.8 billion (£34.2 billion), up from SFr53.1 billion at the end of June.

The increase was driven by both net new money inflows and market performance, although Gam says these effects were partly offset by the depreciation of the dollar against the Swiss franc.

Net inflows were highest into the Gam’s fixed income range, including the funds it sub-advises for Swiss & Global Asset Management. Single manager absolute return products and Asian equity strategies were also popular.

Funds of hedge funds and managed portfolios, on the other hand, saw more net outflows. As client preferences shifted towards single manager and onshore products, many third-party private clients withdrew money from those funds. (article continues below)

In order to capitalise on investors’ ongoing demand for regulated onshore products, Gam expanded its range of Ucits III funds. Gam added two alternative funds to its range and plans further launches in the months to come.

Assets under management for Gam Holding, which includes Swiss & Global Asset Management as well as Gam, increased by SFr 2.1 billion during the third quarter to SFr118.7 billion, despite slower client inflows at both Gam and Swiss & Global.

Gam Holding says it had also adopted a more conservative valuation of its 28% stake in Artio Global Investors, whose share price has fallen over the past six months.

Gam Holding expects this to result in a reduction of the investment’s carrying value through a non-cash charge in the fourth quarter.

The group has tangible equity of around SFr1.3 billion and a cash position of SFr900m.