GAM Client Assets Increase as Market Gains Counter Outflows

GAM Holding AG (GAM), the Swiss money manager that split from Julius Baer Group Ltd. (BAER), said a market rebound helped boost client assets by 3.4 percent in the first quarter.

Assets under management rose to 110.6 billion Swiss francs ($120.7 billion), from 107 billion francs three months earlier, the Zurich-based company said today in a statement. The firm reported a “slight net new money outflow” in the quarter after clients withdrew 3.8 billion francs last year.

GAM Holding said improved market performance helped compensate for client outflows. The company, which is buying back as much as one-fifth of its stock by 2014, posted its first annual loss in 2011 as clients withdrew money and the firm cut the value of its stake in Artio Global Investors Inc. (ART)

“Client activity began to see tentative signs of recovery,” GAM said in the statement, adding that “risk appetite remained fragile.”

GAM fell 1.2 percent to 12.75 francs at 9:44 a.m. in Zurich trading, paring this year’s gain to 25 percent and valuing the company at 2.5 billion francs.

GAM Holding’s Swiss & Global unit, which sells Julius Baer- branded funds, posted a 4.7 percent increase in assets to 80.5 billion francs in the quarter amid demand for fixed-income and equity funds and as customers invested in precious metals exchange-traded funds.

The rest of the business, known as GAM, reported a 2 percent increase in assets under management even as clients withdrew money.

Swiss & Global targets annual inflows of 8 percent to 12 percent, while GAM targets new assets of 6 percent to 10 percent.

To contact the reporter on this story: Giles Broom in Geneva at gbroom@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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