GAM reports buoyant full-year results

Swiss_flagGAM Holding completed a strong year in 2017 as its investment management division enjoyed inflows of 8.6 billion Swiss francs propelled by specialist fixed income strategies.

The Swiss fund house's annual results showed assets under management for its investment management business swelled to 84.4 billion Swiss francs from 68.2 billion Swiss francs, driven by investment returns and foreign exchange movements.

The firm posted pre-tax profits of 172.5 million Swiss francs, a 44% increase on 2016, largely due to increases in net fee and commission income.

Earlier in the year the fund house posted a 37% rise in first-half pre-tax profits.

The group assets under management were up 31% on the previous year to 158.7 billion Swiss francs.

Group chief executive Alexander 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.”

The company said that markets had become more volatile and challenging for investors in 2018 and there could be further de-rating of equities, higher bond yields and widening credit spreads throughout the year.

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