Press Release

Monday, November 15, 2010

Interim management statement for the period to 30 September 2010

• Group assets under management of CHF 118.7 billion[1] up 2% from 30 June 2010, driven by sustained net new money inflows on the back of ongoing product diversification.
• 3.1% of outstanding shares repurchased to date under the share buy-back programme introduced in August 2010.
• Strong balance sheet with tangible equity of approximately CHF 1.3 billion, although the Group anticipates a reduction in the carrying value of its Artio Global Investors Inc. participation.

Group assets under management increased by CHF 2.1 billion during the third quarter to CHF 118.7 billion at 30 September 2010. Although slower, client inflows at both GAM and Swiss & Global Asset Management followed broadly similar patterns to those seen during the first half of the year. 

GAM Holding AG's share buy-back programme was introduced on 26 August 2010. By 12 November 2010, 3.1% of outstanding shares had been repurchased for cancellation at an average share price of CHF 14.79. The programme has a maximum duration of two years and a repurchase limit of 10% of the current shares in issue. Approximately half of the maximum volume of shares are expected to have been repurchased by the annual general meeting on 19 April 2011, when shareholders will be asked to approve their cancellation. The share buy-back programme complements the company's intention to distribute approximately 50% of net profits to shareholders through dividends. GAM Holding AG also has an economic hedge equivalent to 5% of shares in issue in respect of its potential exposure to options granted to employees under its long-term incentive plan.

The Group's balance sheet remains strong, with tangible equity of approximately CHF 1.3 billion and a cash position of approximately CHF 0.9 billion on 30 September 2010. The tangible equity position includes the retained 28% investment in Artio Global Investors Inc. As required under IFRS, the value of this investment is reviewed on a regular basis. Recent trading statements issued by Artio Global Investors Inc. and the fall in its share price over the course of the past six months have led to a more conservative valuation. This is anticipated to result in a reduction of the investment's carrying value through a non-cash charge in the fourth quarter. 

GAM's assets under management at 30 September 2010 were CHF 53.8 billion, up from 
CHF 53.1 billion at the end of June 2010. The increase was driven by net new money inflows and market performance, although these effects were partly offset by the depreciation of the US dollar against the Swiss franc. 

Net inflows were recorded predominantly into the fixed income range, including the funds GAM sub-advises for Swiss & Global Asset Management, as well as into single manager absolute return products and Asian equity strategies. Funds of hedge funds and managed portfolios continued to experience net outflows, mainly from the third-party private client segment, driven in part by a shift in client preferences towards single manager and onshore products. Institutional interest in alternative strategies with low correlation to equity markets remained solid, as evidenced by a strong pipeline of potential business. 

GAM continued to expand its range of UCITS III funds and capitalise on investors' ongoing demand for regulated, onshore products that are managed by the industry's leading investment specialists. With two new alternative funds introduced in the third quarter and several more scheduled for launch in the coming months, GAM's offering includes a diverse and innovative range of long-only and hedge strategies that are particularly suited to the requirements of UCITS III. 

Swiss & Global Asset Management's assets under management increased to CHF 81.9 billion at the end of September 2010 from CHF 78.3 billion at the end of June 2010, reflecting net new money inflows and positive market performance. The negative impact from the weakening of the US dollar was partly offset by the appreciation of the euro against the Swiss franc. 

The greatest contributors to net new money were the fixed income funds distributed by Swiss & Global Asset Management and sub-advised by GAM. The physical precious metal fund range also continued to attract client inflows, and new commodity-based products are being developed to serve the substantial growth in demand for this asset class. While current inflows into equity funds remain muted, Swiss & Global Asset Management expanded its actively managed equity range in anticipation of a renewal of investor appetite in this sector. Finally, the private label fund business continues to generate steady inflows and growth. 

In October, Swiss & Global Asset Management opened an office in Madrid to service its local institutional and intermediary clients. Its primary focus will be the sale of the Luxembourg-based Julius Baer branded funds registered in Spain. With this step, the business expands its onshore footprint in Europe, building on its strong presence in its core markets of Switzerland, Germany and Italy.

GAM Holding AG will publish its full-year 2010 results, including audited financial statements, on 1 March 2011.

Media Relations:
Larissa Alghisi Rubner, GAM Holding AG 
T: +41 (0) 58 426 62 15

Investor Relations:
Thomas Schneckenburger, Bluechip Financial Communications
T: +41 (0) 44 256 88 33


Notes to Editors 

GAM Holding AG is an independent, well-diversified asset management business, with a focus on the manufacturing and distribution of actively managed investment products and solutions. 

GAM Holding AG 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 119 billion as at the end of September 2010. It employs over 1,000 staff with offices in Zurich (head office), Bermuda, Grand Cayman, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Milan, New York and Tokyo.

[1] Excludes CHF 17 billion from Julius Baer branded funds distributed by Swiss & Global Asset Management and sub-advised by GAM.