Profits, Assets Up At GAM
Swiss investment manager GAM announced underlying pre-tax 2017 profits of CHF172million today.
Group CEO Alexander S. Friedman said: "Over the past three years, we have undertaken a top-to-bottom revamp of our business to create an investment management firm designed to gain market share in the new industry environment. We have refined our product range to ensure we have truly differentiated and scalable investment strategies, suited for the changing market conditions, and we have taken a myriad of steps to bolster our investment performance. It is gratifying to see that our well positioned, diversified, and performing products are now enabling the Group's accelerating growth. We are pleased with the financial results achieved in 2017, but recognise there is still a lot to do to deliver on the full potential of GAM."
Some of the highlights from the group included:
- Underlying profit before taxes 44% higher than in 2016, largely due to increase in net fee and commission income; diluted underlying EPS of CHF 0.86 (CHF 0.60 in 2016)
- IFRS net profit at CHF 123.2 million, 8% lower due to a large one-time tax credit in 2016; diluted EPS of CHF 0.78 (CHF 0.85 in 2016)
- Net management fees and commissions at CHF 503.6 million, up 7% from 2016 driven by higher average assets under management; performance fees at CHF 44.1 million (CHF 3.0 million in 2016)
- Structural cost savings in fixed personnel and general expenses of approximately CHF 12 million, ahead of CHF 10 million target
- Proposed dividend of CHF 0.65 per share, unchanged from previous year
- Group assets under management of CHF 158.7 billion, up 31% from 31 December 2016
- Investment management:
- Net inflows of CHF 8.6 billion, with specialist fixed income strategies driving majority of inflows
- Assets under management increased by CHF 16.2 billion to CHF 84.4 billion at 31 December 2017, mainly driven by strong net inflows and investment returns
- Private labelling:
- Net inflows of CHF 15.7 billion
- Assets under management increased by CHF 21.8 billion to CHF 74.3 billion at 31 December 2017, driven by net inflows and a net positive impact from market and foreign exchange movements.