(Adds details, quote)
LONDON Aug 12 Money manager GAM Holding's
funds under management rose in the first half of the
year, boosted by portfolio gains and net inflows, though profits
The firm raised a net 1.2 billion Swiss francs ($1.32
billion) in six months to June and its funds under management
rose 4.5 percent to 119.6 billion francs, it said in a statement
The group's higher margin investment management unit had net
inflows of 1.3 billion francs, while its private labelling
segment, which includes tailor-made investment funds, recorded
The money manager had seen assets dip and net outflows in
the second half of last year.
The reversal was helped by a strong contribution from fixed
income strategies and the Julius Baer-branded European
asset-backed securities strategy. Flows into emerging market
fixed income also turned positive, it said.
"For us it is evident that actively managed solutions will
play an essential part in investors' portfolios over the coming
years," said group chief executive David Solo in a statement.
"Rising geopolitical tensions, the prospects of monetary
tightening and the unwinding of quantitative easing all create
the need for proven active management to navigate the
increasingly volatile markets ahead."
Underlying net profit fell 17 percent to 93.1 million francs
in the first half as compared to the same period last year
because of lower performance fees.
($1 = 0.9075 Swiss Francs)
(Reporting by Nishant Kumar; Editing by Laura Noonan)