GAM Holding Boosts First-Half Profit as Fee Income Gains
Net income rose to 117.5 million Swiss francs ($127 million) from 36.6 million francs a year earlier, Zurich-based GAM Holding said today in a financial report on its website. Net management fees and commissions climbed 14 percent to 279 million francs.
“Investors are reassessing their portfolio allocations, preferring alternative fixed income strategies” and “slowly but steadily” regaining their appetite for equity investments, Chief Executive Officer David Solo said in a statement.
Earnings were boosted after the sale of GAM Holding’s minority stake in Artio Global Investors Inc. to Aberdeen Asset Management Plc (ADN) in May resulted in a one-time gain of 13.1 million francs. Assets under management dropped 2 percent to 116.6 billion francs at the end of the period from the end of March after a “sharp market correction” in June, the firm said. Clients withdrew 600 million francs in the first half of the year.
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