GAM First-Half Profit Rebounds After Lower Charge on Artio Stake
GAM Holding AG (GAM), the asset manager that split from Julius Baer Group Ltd. (BAER) almost three years ago, said first-half profit climbed after booking a lower charge on its stake in Artio Global Investors Inc. (ART)
Net income rose to 35.9 million Swiss francs ($36.9 million) from 2.4 million francs a year earlier, Zurich-based GAM Holding said today in a statement. Stripping out the Artio revaluation and other one-time items, profit dropped 30 percent to 70.2 million francs.
GAM Holding posted a 22.5 million-franc charge after reducing the value of its holding in New York-based Artio to 55.5 million francs as of June 30. The value of the stake was cut by 92.2 million francs in the year-earlier period. The firm reported first-half net inflows of 900 million francs.
“We have the ability to capture client flows even in an environment where demand is thin and focused on specific, narrow areas,” Johannes De Gier, chairman and chief executive officer of GAM Holding, said in the statement. “Unless market conditions were to improve dramatically, we expect uncertainty to persist and to continue to impact client behavior.”
GAM Holding, which is buying back as much as 20 percent of its shares by 2014, has climbed 9.3 percent in Zurich trading this year.
GAM Holding said assets under management were little changed at 111.1 billion francs during the second quarter.
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