Swiss Asset Manager GAM looks to be recovering from last year's slump, with first-half profit climbing by more than a quarter, boosted by an increase in net new money.
The Zurich based Asset Manager GAM posted a net profit of 67,7 Million Swiss Francs in the six months through June, a gain of 27 Percent compared with the same period of 2016, GAM reported Thursday.
The Group's managed assets rose by 9 Percent in the first half of the year to reach 131,1 Billion Francs, it said. The Investment Management unit accounted for an extra 1,9 Billion Francs in new money, while Private Labelling grew its business by 4,5 Billion Francs. The rest of the managed asset gains came from an improved investment performance.
Profit Growth Target of 10 Percent.
«On the right path»
GAM Chief Executive Alexander Friedman said the Group's recovery is well underway, and the first-half efforts to improve performance are reflected in the financial results. «We're on the right path for positioning GAM for long-term growth, and a disciplined implementation of our strategy and operative efficiency will remain our goal,» the CEO said in a statement.
GAM is confident the improved investment performance and the stronger business unit will lead to further net new money inflows in the future. The goal for GAM is to increase annual operating profit per share by around 10 Percent, and to achieve an operating margin of 35 to 40 Percent.
The Group suffered a whopping drop in first-half profit last year after a poor investment performance in its Funds unit.
