GAM beats estimates with first-half profits

Profit_meterSwiss fund house GAM Holding, whose shareholders earlier this year fought off bonuses for top executives, has reported a 37% rise in first-half pre-tax profits.

Zürich-based GAM posted stronger-than-expected underlying pre-tax profits for the six months to June of 75.4 million Swiss francs (€65.59 million).

Group assets under management rose 9% over the six-month accounting period to 131.3 billion Swiss francs from 120.7 billion Swiss francs at the end of 2016.

Group chief executive Alexander Friedman, who earlier this year survived an attempt by activist investor RBR Capital Advisors to oust him, said that work to turn around the firm over the last two years was now bearing fruit and that he was confident for the future of the business.

“Our net inflows were strong in the first half of this year, the investment performance of the majority of our assets under management was excellent, a number of our key investment strategies delivered good performance fees, and our profitability improved substantially compared with the first half of 2016,” he said.

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