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LONDON, Aug 12 (Reuters) - 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 fell.
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 on Tuesday.
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 net outflows.
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)