Zurich-headquartered asset manager GAM has announced it will absorb all research costs as from January 2018, which will see the implementation of MifiD II. GAM said it currently expects research costs to amount to mid-single-digit CHF millions per annum.
Also the manager revealed that a new UK equity income fund will be launched later this year and mentioned two recent appointments : Adrian Gosden as investment director and Shizu Kishimoto as head of Sales and overall business operations in Japan.
GAM reported a 13% rise in assets under management quarter-on-quarter to CHF148.4bn (€128.5bn) from 30 June 2017, a figure that is up 23% compared to December 2016. Some CHF11.8bn (€10.2bn) of net new inflows have been recorder over the third quarter of 2017.
Investment management accounted for CHF78.7bn (€68.1bn) of GAM’s total AuM, up 9% qoq, while private labelling formed CHF69.7bn (€60.3bn) of the group’s AuM, having risen by 18% qoq.
Fixed income funds boost inflows
GAM’s funds have boarded CHF3.5bn (€3bn) of net new cash in Q3 2017. Some CHF4.1bn (€3.5bn) of net new money have been poured into fixed income strategies, with the GAM Star Credit Opportunities, the GAM Local Emerging Bond and the GAM Star MBS Total Return funds leading the inflows.
Absolute return strategies had faced net outflows of CHF0.6bn (€0.5bn) as inflows into the GAM Star Global Rates and the GAM Star (Lux) – Merger Arbitrage were offset by outflows from the unconstrained absolute return bond strategy.
On the equity side, net inflows have amounted to CHF0.1bn (€0.08bn), mostly driven by inflows into the GAM Star Continental European Equity fund. Redemptions have been seen in the GAM UK Diversified, GAM Japan Equity and GAM Star China Equity funds.
Systematic strategies faced net inflows of CHF0.1bn (€0.08bn) while multi asset funds lost CHF0.1bn (€0.08bn), mainly because of redemptions in the private client advisory business.
Also GAM highlighted outflows of CHF0.1bn (€0.08bn) in the alternative fund range, that reflect redemptions in the fund of hedge funds business.