thewealthnet     About Us    |    FAQs    |    Contact Us
  Advanced Search       RSS Feed  twitter  linkedin 
Welcome to thewealthnet    |   Europe, Middle East & Africa Get The App   |   Login
  Tue 19th Feb 2019  |    Make this my homepage  
Subscribe now!
Credit Cards Accepted
World Map
GAM expects increase in pre-tax profits
13/07/2018 , News Team

GAM Holding AG expects to report a pre-tax profit , which excludes non-recurring and acquisition-related items, of around CHF 91 million for the first half of 2018, compared with CHF 75.4 million for the same period in 2017, the firm said in an update on its first-half 2018 results.

The 2018 figure includes approximately CHF 2 million of performance fess, whereas the 2017 figure had CHF 19.3 million of performance fees.

However, GAM actually expects to report an IFRS net profit for the first half of 2018 of approximately CHF 25 million, which is significantly lower than the comparable 2017 figure of CHF 67.7 million due to other costs. 

GAM expects to incur a non-cash impairment charge of around CHF 59 million, net of taxes, on the intangible assets related to the original funds of Cantab Capital Partners acquired in October 2016, due to lower assets under management and cash flows compared with those forecast at the time of the Cantab acquisition. 

The group also expects a related reduction in the Cantab deferred consideration liability, which represents the part of the purchase price that was deferred over multiple years. This amounts to approximately CHF 30 million in the first half of 2018. Combined with previously recognised adjustments, the reduction in the deferred consideration liability since the 2016 acquisition is expected to amount to about CHF 57 million. Despite this, the firm continues to see wider growth of the GAM Systematic Cantab platform driven by new product launches.

Group chief executive Alexander S. Friedman said: "We continue to see GAM Systematic Cantab as a key driver of future growth for our company. While the developments in assets under management since the acquisition have been below expectation, they have been in line with industry trends as investors have turned more averse toward high volatility hedge funds.”

These figures for the first half of 2018 are estimates and the final results will be released on 31 July 2018.

GAM employs over 900 people in 13 countries with investment centres in London, Cambridge, Zurich and Hong Kong. The group has assets under management of CHF 162.3 billion as at 31 March 2018.



Share with Linkedin Share with Twitter
Poor   Average   Good   Excellent
thewealthnet archives contain 51,114 articles dating back to 1997,making it the largest single source of information on the wealth management industry world-wide. To search for more articles, please click here.


© This article originally featured on thewealthnet. It is protected by international copyright law. If you copy this article illegally, you will be liable to prosecution. All rights in and relating to this article are expressly reserved. No part of this article may be reproduced, stored in a retrieval system or transmitted in any form or by any means without written permission from the publishers.

    Latest Headlines:    by Topic | All News
  Advertise   |   Contribute   |   Press Release   |   Terms of Use   |   Privacy   |   Contact Us Copyright Pam Insight Ltd., All Rights Reserved