GAM Holding Says Managed Assets Little Changed on Weaker Dollar

GAM Holding AG (GAM), the Swiss money manager that split from Julius Baer Group Ltd. (BAER) four years ago, said assets under management were little changed in the third quarter.

Client assets as of Sept. 30 were “flat,” compared with the 116.6 billion Swiss francs ($129 billion) reported at the end of June, Zurich-based GAM Holding said today in an e-mailed statement. The company had “small net outflows,” in the period, said Larissa Alghisi, a spokeswoman for the firm.

“The weakening of the U.S. dollar by almost 5 percent against the group’s Swiss franc reporting currency offset the significant rebound in market performance experienced in the third quarter.” the company said.

GAM Holding had withdrawals from third-party managed money market funds as well as closures and redemptions of offshore funds. The firm had inflows from a U.S. public pension fund into its alternative investments business and inflows into Julius-Baer branded equity funds.

GAM Holding said it reduced the quarterly volume of shares repurchased as part of a three year buyback initiative. The company, which began that initiative in 2011, said it will place a “stronger emphasis” on dividends, while sticking to a pay-out ratio of approximately 50 percent of underlying profit.

GAM Holding has surged 38 percent to 17 francs a share this year, compared with a 24 percent gain for the 107-member Bloomberg European Financial Index.

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.