OREANDA-NEWS. In accordance with the Group's obligations under the listing rules of the SIX Swiss Exchange (article 53), GAM today provides an update on its expected first-half 2016 results. The underlying profit before tax for the first half of 2016 is likely to decline by approximately 50% from the CHF 101.5 million reported for the first half of 2015.

Performance fees for the first half of 2016 are expected to be lower, at approximately CHF 1 million (CHF 44.1 million for the first half of 2015), a reduction highlighted in GAM's first-quarter interim management statement of 20 April 2016. This estimate is based on recognised performance fees up to 31 May 2016 and uncrystallised performance fees as at 31 May 2016 with June month-end crystallisation dates. Net management fees and commissions are also expected to decline, mainly driven by lower average assets under management and a slight reduction in the average management fee margin. These effects will be partially offset by a reduction in personnel expenses and ongoing cost control.

The IFRS profit after tax for the first half of 2016 is anticipated to decline broadly in line with the decrease in underlying profit after tax. The IFRS profit after tax reported for the first half of 2015 was CHF 80.9 million.     

The company continues to control costs in a disciplined manner and the implementation of its new target operating model is on track. As demonstrated by the recently announced acquisition of Taube Hodson Stonex (THS) on 16 May 2016, GAM continues to expand its core investment management capabilities and offerings through strategic and financially compelling acquisitions and the development of new products in areas such as trade finance, absolute return and real estate debt. The company will report its half-year results and update the market on its strategic initiatives as planned on 3 August 2016.

GAM is one of the world's leading independent, pure-play asset managers. It provides active investment solutions and products for institutions, financial intermediaries and private investors, under two brands: GAM and Julius Baer Funds. The core investment business is complemented by private labelling services, which include management company and other support services to third-party institutions. GAM employs over 1,000 people in 11 countries with investment centres in London, Zurich, Hong Kong, New York, Lugano and Milan. The investment managers are supported by an extensive global distribution network.

Headquartered in Zurich, GAM is listed on the SIX Swiss Exchange and is a component of the Swiss Market Index Mid (SMIM) with the symbol 'GAM'. The Group has assets under management of CHF 114.7 billion (USD 119.8 billion) as at 31 March 2016.