GAM Holdings, the Zurich-listed firm catering to clients such as high net worth individuals, said assets under management in its investment arm slipped a touch to SFr69.6 billion ($79 billion).

GAM Holdings, the Zurich-listed firm catering to clients such as high net worth individuals, reported today that assets under management in its investment arm slipped a touch to SFr69.6 billion ($79 billion) at the end of March from SFr69.8 billion three months earlier.

Market performance had a positive effect, largely offsetting the net new money outflows experienced for the full quarter and the adverse impact from a strengthening Swiss franc (GAM’s reporting currency) against the US dollar and the euro, it said in a statement.

Investment management experienced the tail end of outflows which began in late 2013, with client flows turning positive in March, it said.

There were flows out of the firm’s largest flagship absolute return/unconstrained bond and local emerging debt strategies but the position stabilised towards the end of the quarter, on the back of a marked improvement in investment performance in both strategies.

Low-margin money market funds and the physical gold ETF continued to experience market-driven net new money outflows across the reporting period. They were offset by “robust demand” for GAM's higher-margin equity products.

Private labelling

In GAM’s “Private Labelling” arm - the area providing outsourcing solutions to third parties and contributing around 6 per cent of its revenues - ended the quarter with assets under management of SFr45.7 billion. Assets rose SFr1.1 billion from 31 December 2013, reflecting positive market performance and net new money inflows. Foreign exchange movements had a small negative impact, as the majority of assets in this business are denominated in Swiss francs.

Net inflows were recorded mainly in Luxembourg-domiciled and offshore funds, while funds domiciled in Switzerland experienced net outflows. The year started on a positive note, with a number of product launches by existing partners and a mandate from a newly acquired Swiss pension fund client.

Tangible equity as at 31 March 2014 was SFr 563.1 million, up from SFr 551.4 million at year-end 2013. This reflects continued levels of robust profitability across the group's businesses.