Global leadership in alternative asset management

Transcription

1 Global leadership in alternative asset management Gottex Fund Management Holdings Limited Interim Report June 202

2 2 Gottex Fund Management Holdings Limited Gottex Fund Management Holdings Limited A leader in the alternative asset management industry Overview 03 Business and Financial Highlights 04 Chairman s Statement Financials Unaudited Interim Condensed Consolidated Financial Statements 06 Review Report on the Interim Condensed Consolidated Financial Statements 07 Unaudited Interim Condensed Consolidated Income Statement 08 Unaudited Interim Condensed Consolidated Statement of Comprehensive Income 09 Unaudited Interim Condensed Consolidated Statement of Financial Position 0 Unaudited Interim Condensed Consolidated Statement of Cash Flows Unaudited Interim Condensed Consolidated Statement of Changes in Equity 2 Notes to the Unaudited Interim Condensed Consolidated Financial Statements Gottex Fund Management Holdings is a leading provider of hedge fund and multi-asset investment solutions and advisory services. Founded in 992, Gottex had USD 7.4 billion (excluding Penjing assets) in total fee-earning assets as at. Gottex offers a variety of investment products and related services. Currently Gottex employs 3 people (full time equivalent); including 7 people from Penjing and 34 investment professionals, located in offices across three continents. This allows the firm to combine indepth local knowledge of financial markets and investors with the strength of a global presence and institutional infrastructure. Where we are New York Boston London Hong Kong Guernsey Luxembourg Lausanne Zurich

3 Overview Financials Interim Report June Interim Report June 202 Business Highlights USD 7.4 billion in total fee-earning assets, up % from USD 7.3 billion in December 20. Won USD 635 million in GFM and LUMA- GSS mandates in H 202. Core market neutral, alternative credit, directional and portable alpha products continue to outperform their benchmarks. Completed acquisition of Hong Kong based Penjing Asset Management with over USD 408 million* in assets in August 202. Approximately USD 35 million in cash reserves and liquid fi nancial investments and a debt-free balance sheet. * At. Financial Highlights USD June 202 December 20 June 20 Total fee-earning assets 7.4bn 7.3bn 8.9bn USD Six months to June 202 Six months to December 20 After excluding amortisation, depreciation and share based payment charges. Six months to June 20 Gross revenues 23.m 26.8m 3.9m Management fees 9.7m 22.9m 26.0m Performance fees 0.8m.m 3.0m Operating (loss) / profit ** (2.6m) 0.4m 0.3m (Loss) / profit after tax (6.4m) (4.3m).0m (Loss) / earnings per share-basic (Loss) / earnings per share-adjusted (0.22) (0.09) 0.0 (0.05) nil nil ** Cash operating (loss) / profit (0.6m) +3.0m +2.8m *

4 4 Gottex Fund Management Holdings Limited Message from the Chairman Joachim Gottschalk Chairman and Chief Executive Offi cer Similarly to the previous two years, positive performance over the winter period ran into uncertainty and volatility by the second quarter, which impacted asset raising and incentive fee generation. More encouraging are the strong relative performance of our core products, the positive client flow and the acquisition of Penjing Asset Management in August, which establishes Gottex as one of the leading Asian multi-manager solution providers. However, we expect the risk-on/risk-off environment to remain the main characteristic of the financial markets for the foreseeable future. This is likely to influence growth in the hedge fund industry until financial and political stability returns or hedge fund returns materially outperform other asset classes. The Board s strategy is focused on enhancing the Group s core multimanager business, developing its strategic initiatives, namely Asia, the multi-asset business and its hedge fund managed account platform, as well as lowering its cost base. Overview The fifth public interim report of Gottex Fund Management Holdings Limited covers a period that saw our total fee-earning assets remain stable at USD 7.4 billion at, compared to USD 7.3 billion at 3 December 20. The Group saw subscriptions of USD 636 million and redemptions of USD 56 million, equal to net inflows of USD 20 million, predominantly in advisory mandates which have lower net revenue rates. This, combined with a reduction in performance fees meant that gross revenues for the first half of 202 were USD 23. million compared to USD 26.8 million for the second half of 20. The Group is on track to achieve its 5% likefor-like cost savings target but this will be weighted towards the second half of this year and consequently the Group incurred an operating loss of USD 2.6 million. Financial items and the additional write down in full of the impaired loans of USD 3.9 million contributed to a net loss after tax of USD 6.5 million. Gottex benefits from a strong balance sheet without debt and USD 35.0 million in cash and liquid financial investments. This is after the Employee Benefit Trust repurchased USD 9.0 million worth of Company shares during the first half of this year to offset dilution from the future vesting of the various employee share award schemes. Despite a challenging market environment, it is important to highlight that Gottex remained virtually operationally cash neutral, with a slight cash operating loss before amortisation, depreciation and share based payment charges of USD 0.6 million for H 202. Review of the first six months In a repeat of the last two years, 202 started off strongly but ran into a broad based correction in the second quarter of the year, fuelled by the European sovereign debt crisis, uncertainties around the US debt ceiling negotiations and a potential slowdown in China. Partly expecting such a pattern, hedge funds had started the year with considerably less risk on their books and the HFRI Fund Weighted Composite Index 2 and HFRI FOF Conservative Index 3 both remained in positive territory during the first six months with.87% and.09% respectively. Gottex is moving towards a business unit oriented structure comprising the core multi-manager FOHF business, the multi-asset business and outsourced CIO proposition, the LUMA-GSS managed account business and the Asian business. The FOHF business, Gottex s core market neutral, relative value and event driven products, performed well and were up 2% to 4% for H 202, and are again outperforming all the main fund of funds benchmarks similar to previous years. As a result our flagship products were.% and 6.0% away from regaining their high water marks at the end of June. With regards to our other multi-manager products, we are very pleased that our more directional products outperformed their benchmarks during this period, in particular the alternative credit product which was up 5.9% and our portable alpha equity product which was up.2%, while certain of our segregated multi-manager accounts generated over 4% of positive performance. During 20 Gottex selected Asia as one of its medium-term strategic growth initiatives, a region and marketplace offering significant potential in terms of generating strong investment returns as well as providing the local

5 Overview Financials Interim Report June Our main products are substantially ahead on benchmarks over a three year period investor base with global alternative investment solutions. As part of this strategy, the Board considered it crucial to establish a strong and credible local presence and investment team. During the second quarter of this year Gottex agreed to acquire 00% of Hong Kong based Penjing Asset Management ( Penjing ), one of the primary Asian FOHF teams, overseeing over USD 408 million* in assets. The deal was completed in August and the acquisition will be incorporated within the second half of the year and the annual report for 202. Management believe the acquisition provides compelling strategic benefits to the Group, including establishing a leading local organisation in a region of strategic importance from an investment and an asset raising perspective. The combination of Gottex and Penjing establishes one of the largest Asia-focused hedge fund investment firms with a ten strong investment team, offering local and global clients the ability to invest in this fast growing region with confidence. The Group also expects to benefit from investment management, distribution and cost synergies. Our multi-asset business is gaining traction with access to a large US distribution platform and discussions are progressing with two other US broker-dealers. On the European side, the Group is developing its distribution capabilities for its multi-asset products in co-operation with Above Wealth LLP, a London based private wealth manager. The Gottex Real Asset Fund is now six months into its realisation period and has some promising exits in its pipeline. As for our solutions business, LUMA-GSS, its assets remained unchanged during the first half at USD.7 billion. As part of a strategic review and reorientation, OFI Asset Management will withdraw during 202 from the managed accounts business, which will reduce the volume of AUM but not materially affect Gottex s net revenues. Total fee-earning assets of USD 7.4 billion at (excluding Penjing) consisted of USD 5.7 billion in assets under management ( AUM ) and USD.7 billion of LUMA-GSS managed account and advisory assets, compared to USD 7.3 billion at 3 December 20, consisting of USD 5.6 billion in AUM and USD.7 billion for LUMA-GSS. AUM increased by USD 70 million during the first half as USD 70 million of net client inflows were partly offset by a USD 25 million impact from foreign exchange, technical factors and returns to run-off share classes, whilst performance added USD 25 million. Gottex s client base remains primarily institutional, representing over 90% of AUM. It is crucial to our clients and our Group that our highly qualified investment team remains fully focused on managing our clients assets and generating strong absolute and risk adjusted returns. Bill Landes and Kevin Maloney, who are the Chief Investment Officers, will be joining the Board in the second half of 202. It is important to note that the Group has issued several long-term performance related share awards to its key executives equalling 5.6% of current outstanding share capital. The Board believes that diluting previous partners holdings in favour of key personnel will ensure the commitment and involvement of those building the business in the future. Going forward and Outlook We expect the current risk-on/risk-off climate, driven by the Euro debt crisis and economic uncertainties, to continue to affect the world s financial markets in the short to medium term. This will have a dampening effect on client asset flows until such point when a clear positive divergence between hedge fund returns and traditional asset classes emerges. On the other hand we see growth opportunities in multi-asset products and Asia. Strong investment performance remains key and the Board is fully committed to ensuring that the high quality investment platform Gottex has built over the years will remain in place. Our multi-manager business is evolving in step with our clients needs and directions. We believe that our professionals can help to achieve the diversified investment returns investors require in this challenging financial climate. In addition to our core fund of hedge fund business, we continue to drive the development of our strategic initiatives. From a corporate perspective, we will look for non-organic growth opportunities, be it large distribution partners or smaller specialist firms. The goal is to add assets, distribution capabilities, critical mass to growth areas or to extract synergies, improving profitability without distracting the core business. The Group is focused on evolving its core business, where strong relative performance and the proximity of incentive fees for our flagship products are promising, while developing its strategic initiatives. At the same time we are moving towards achieving our goals of being operationally cash flow positive and better positioned in the current challenging environment. We remain positive about the long-term outlook for our industry and our Group. We are committed to building and expanding the Group and strengthening our business platform. Joachim Gottschalk Chairman and Chief Executive Offi cer Gottex, GFMH or the Company and together with its subsidiaries, the Group. 2 HFRI FOF Composite Index consists of over 800 fund of hedge fund constituents, domestic and offshore. These indices are unmanaged and uninvestable and the figures do not effect any deduction for fees, expenses or taxes. (However the funds making up the index reflect net returns and Gottex has not selected or eliminated any index based solely on performance). 3 HFRI FOF Conservative Index consists of funds of hedge funds that primarily invest in conservative strategies. The index is unmanaged and uninvestable and the figures do not reflect any deductions for fees, expenses or taxes. (However, the funds making up the index reflect net returns and Gottex has not selected or eliminated any index based solely on performance). * As at.

6 6 Gottex Fund Management Holdings Limited Review Report on the Unaudited Interim Condensed Consolidated Financial Statements Ernst & Young Ltd Route de Chancy 59 P.O. Box CH-23 Geneva Phone Fax Geneva, 7 September 202 Gottex Fund Management Holdings Limited Review report on the interim condensed consolidated financial statements Introduction We have reviewed the accompanying interim condensed consolidated financial statements of Gottex Fund Management Holdings Limited and its subsidiaries (the Group ) as of 30 June 202, comprising of the interim condensed consolidated statement of financial position as of and the related interim condensed consolidated statements of income, comprehensive income, changes in equity and cash flows for the six-month period then ended and notes to the interim condensed consolidated financial statements (pages 7 to 2). The Directors are responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting ( IAS 34 ). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements 240, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34. Ernst & Young Ltd John Alton Milena De Simone

7 Overview Financials Interim Report June Unaudited Interim Condensed Consolidated Income Statement for the six months ended Note Revenue 2,3 23,07 3,868 Referral fee expense 4 (3,96) (5,072) Gross profit 9,0 26,796 Operating costs 5, 6 (2,75) (26,59) Operating (loss) / profit (2,64) 277 Finance income Finance costs () - Net (loss) / gain on financial assets 7 (675) 809 Impairment of receivables 3 (3,897) - Share of post tax gains / (losses) from joint venture (22) Share of post tax losses from associates (6) (32) (Loss) / profit before taxation (7,86),40 Income tax credit / (expense) (55) (Loss) / profit for the period (6,442) 985 Attributable to: Equity holders of the parent company (5,540) 395 Non-controlling interest (902) 590 (Loss) / profit for the period (6,442) 985 The result for the six months ended is derived from continuing operations. (Loss) / earnings per share Basic, for (loss) / profit for the period attributable to ordinary equity holders of the parent company Diluted, for (loss) / profit for the period attributable to ordinary equity holders of the parent company 9 USD (0.22) USD USD (0.22) USD 0.0 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

8 8 Gottex Fund Management Holdings Limited Unaudited Interim Condensed Consolidated Statement of Comprehensive Income for the six months ended (Loss) / profit for the period (6,442) 985 Exchange differences arising on translation of foreign operations (97) 30 Other comprehensive (loss) / income for the period, net of tax (97) 30 Total comprehensive (loss) / income for the period, net of tax (6,539),295 Attributable to: Equity holders of the parent company (5,624) 670 Non-controlling interest (95) 625 (6,539),295 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

9 Overview Financials Interim Report June Unaudited Interim Condensed Consolidated Statement of Financial Position at Note At At 3 December 20 Non-current assets Intangible assets Financial investments 7 8,23 6,948 Investment in joint venture Investment in associates 2 4,529 6,078 Property, plant and equipment Deferred tax asset 3,85 2,563 26,708 26,766 Current assets Trade debtors 3 9,595 9,020 Other receivables 3 5,67 9,206 Tax assets 2 Cash and cash equivalents 6,845 34,88 32,2 52,426 Total assets 58,820 79,92 Share capital 5 26,72 26,72 Treasury shares (2,38) (3,527) Other reserves 9,760 20,720 Retained earnings 5,493 0,27 Equity attributable to equity holders of the parent company 30,044 43,636 Non-controlling interest 9,546 0,63 Total equity 39,590 54,267 Non-current liabilities Accruals 4,578 3,95,578 3,95 Current liabilities Trade creditors 4 6,376 6,87 Other payables 4 0,64 4,345 Current tax liabilities, ,652 20,974 Total liabilities 9,230 24,925 Total equity and liabilities 58,820 79,92 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

10 0 Gottex Fund Management Holdings Limited Unaudited Interim Condensed Consolidated Statement of Cash Flows for the six months ended Note Operating activities (Loss) / profit before taxation (7,86),40 Adjustments for: Amortisation of intangibles Depreciation of property, plant and equipment Share based payments 7,538,768 Decrease / (increase) in receivables 4,540 (5,279) (Decrease) / increase in payables (6,784) 306 Income taxes received / (paid) 804 (47) Finance income (33) (08) Finance costs - Net loss / (gain) on financial assets 675 (809) Share of post tax gains from joint venture () 22 Share of post tax losses from associates 6 32 Net cash outflow from operating activities (5,9) (2,20) Investing activities Interest received 33 2 Proceeds from sale of property, plant and equipment - Proceeds from sale of investments 548 2,907 Purchase of intangible assets - (200) Purchase of investments (2,507) (,46) Loans advanced to Funds - (,407) Purchase of property, plant and equipment (56) (297) Investment in Edex Recovery Solutions, LLC ( EDEX ) (26) - Cash acquired on consolidation of LUMA Solutions Services Sárl ( LUMA ) 70 - Cash outflow on deconsolidation of Gottex Absolute Return UCITS Fund ( UCITS ) - (,35) Net cash used in investing activities (,838) (,787) Financing activities Interest paid () - Dividends paid to equity holders 0 - (57) Cash paid to GFMH ABL Fund Limited non-controlling interest holders (0) (30) Cash received from UCITS non-controller interest holders - 5,7 Purchase of Treasury Shares (9,566) (869) Net cash (used in) / from financing activities (9,677) 3,890 Net decrease in cash and cash equivalents in the period (7,426) (0,07) Opening cash and cash equivalents 34,88 38,349 Effect of foreign exchange rates 83 (45) Closing cash and cash equivalents 6,845 28,97 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

11 Overview Financials Interim Report June 202 Unaudited Interim Condensed Consolidated Statement of Changes in Equity for the six months ended Share based Treasury Translation payment shares reserve reserve Pooling and other Total other reserves reserves Attributable to eq- Retained earnings Share uity holders of the Non-controlling capital parent company interest Total equity Balance at January 20 Profit for the period Other comprehensive income Total comprehensive income for the period ,295 Issue of shares (562) - Purchase of treasury shares - (869) (869) - (869) Recognition of share based payments - - -,65 -,65 -,65 53,768 Reclassification due to vesting of equity awards - 6,823 - (2,550) - (2,550) (4,273) Dividends (57) (57) - (57) Cash paid to GFMH ABL Fund Limited non-controlling interest holders (30) (30) Deconsolidation of UCITS (50) (50) (3,348) (3,858) Balance at 26,72 (0,633) (4,236) 2,420 4,206 22,390 7,736 45,665 2,725 58,390 Balance at January ,72 (3,527) (4,64) 0,678 4,206 20,720 0,27 43,636 0,63 54,267 Loss for the period (5,540) (5,540) (902) (6,442) Other comprehensive loss - - (84) - - (84) - (84) (3) (97) Total comprehensive loss for the period - - (84) - - (84) (5,540) (5,624) (95) (6,539) Purchase of treasury shares - (9,566) (9,566) - (9,566) Recognition of share based payments - - -,393 -,393 -,393 45,538 Reclassification due to vesting of equity awards -,72 - (2,269) - (2,269) Reclassification of non-controlling interests (205) - Cash paid to GFMH ABL Fund Limited non-controlling interest holders (0) (0) Balance at 26,72 (2,38) (4,248) 9,802 4,206 9,760 5,493 30,044 9,546 39,590 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

12 2 Gottex Fund Management Holdings Limited Notes to the Unaudited Interim Condensed Consolidated Financial Statements Corporate information Gottex Fund Management Holdings Limited ( GFMH or the Company ) is a company registered in Guernsey and listed on the SIX Swiss Exchange. The unaudited interim condensed consolidated fi nancial statements for the six months ended comprise GFMH and its subsidiaries (together referred to as the Group). The Group acts as an investment manager and advisor for fund of hedge funds activity, direct investment and advisory services to a predominantly institutional investor base worldwide. These unaudited interim condensed consolidated fi nancial statements were authorised for issue by the Board of Directors on 7 September Accounting policies Basis of preparation The unaudited interim condensed consolidated fi nancial statements for the six months ended have been prepared in accordance with IAS 34 Interim Financial Reporting. The unaudited interim condensed consolidated fi nancial statements do not include all the information and disclosures required in the annual fi nancial statements, and should be read in conjunction with the Group s annual audited fi nancial statements as at 3 December 20. The unaudited interim condensed consolidated fi nancial statements are presented in US Dollars, rounded to the nearest thousand, except where otherwise indicated. Changes in accounting policies The accounting policies adopted in the preparation of these unaudited interim condensed consolidated fi nancial statements are consistent with those followed in the preparation of the Group s annual audited fi nancial statements for the year ended 3 December 20. The Group adopted the following standards, interpretations and amendments thereto as at January 202 and this has not resulted in any changes to the fi nancial position or performance of the Group nor resulted in any additional disclosures to these unaudited interim condensed consolidated fi nancial statements, other than described below. Standard or interpretation Title Impact on Group IFRS 2 Income Taxes Deferred Tax: Recovery of Underlying Assets No material impact IFRS 7 Financial Instruments: Disclosures Transfer Transactions and Financial Assets No material impact At the date of these unaudited interim condensed consolidated fi nancial statements, the following Standards and Interpretations which have not been applied in these fi nancial statements were in issue but not yet effective for these fi nancial statements. As a result these Standards and Interpretations do not impact these unaudited interim condensed consolidated fi nancial statements. Standard or interpretation Description Effective Date IFRS 7 Financial Instruments: Disclosures Annual periods beginning on or after January 203 IFRS 9 Financial Instruments Annual periods beginning on or after January 205 IFRS 0 Consolidated Financial Statements Annual periods beginning on or after January 203 IFRS Joint Arrangements Annual periods beginning on or after January 203 IFRS 2 Disclosure of Interests in Other Entities Annual periods beginning on or after January 203 IFRS 3 Fair Value Measurement Annual periods beginning on or after January 203 IAS Amendments to IAS : Annual periods beginning on or after July 202 Presentation of items of OCI IAS 32 Financial Instruments: Presentation Annual periods beginning on or after January 204 IAS 9 Employee Benefits Annual periods beginning on or after January 203 IAS 27 Separate Financial Statements (as amended in 20) Annual periods beginning on or after January 203 IAS 28 Investments in Associates and Joint Ventures Annual periods beginning on or after January 203 Annual Improvements Cycle Annual periods beginning on or after January 203 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

13 Overview Financials Interim Report June Based on the current structure and nature, other than the introduction of IFRS 0 and the changes to IAS 9 where the Group has not yet completed its reviews, the adoption of these Standards and Interpretations in future years is not expected to have a material impact on the Group fi nancial statements. The Group has adopted and will adopt all relevant new standards when they become effective. 2. Segmental analysis of results Revenue from investment management services and assets under management can be and are categorised by strategy, fund type and asset class. In addition the Gottex structured products group ( GSP ) undertakes negotiation and structuring of competitive leverage and liquidity contracts with leverage and liquidity providers, as well as the structuring of investment products. Although gross revenue is reviewed in detail by revenue source, internal fi nancial reporting and performance monitoring and measurement is not further segregated below this revenue level for use in the business. The chief decision maker, which is considered to be the Executive Management Committee, reviews the costs, profi t, assets and liabilities on a Group basis. Accordingly, all signifi cant decisions are based upon the analysis of the Group as one segment. Therefore the Directors concluded that there is one operating segment within the meaning of IFRS 8 Segment Reporting and the fi nancial results of this segment are equivalent to the fi nancial statements of the Group as a whole. 3. Revenue Management fees 9,656 25,992 Performance fees 809 3,043 GSS Fees,443,63 Structure and leverage fees Advisory fees Total revenue 23,07 3, Referral fee expense Referral fee expenses comprise third party commissions for client introductions and ongoing client service, and some specifi c rebates to customers of the underlying Gottex funds. Management fees 3,789 4,285 Performance fees ,96 5,072

14 4 Gottex Fund Management Holdings Limited Notes to the Unaudited Interim Condensed Consolidated Financial Statements 5. Operating costs Note Personnel expenses 6 6,505 20,682 General and administrative expenses 4,266 4,578 Marketing and representation services 980,259 2,75 26,59 6. Personnel expenses The aggregate remuneration of employees (including executive directors) was: Note Wages and salaries 3,06 6,996 Social security expenses,023,272 Net pension cost 76 9 Share based payments 7,538,768 Sundry personnel expenses ,505 20,682 A charge of USD 500,000, including payroll charges, is included within the wages and salaries and share based payment captions which relates to the acceleration of costs upon the departure of a key employee. 7. Net (loss) / gain on financial assets The net (loss) / gain on fi nancial assets designated at fair value through profi t or loss can be analysed as follows: GFMH ABL Fund Limited (932) 604 GMAE Fund UCITS Fund - 74 Market Neutral Fund 0 50 GVA ABL Fund (52) (44) Tiger Fund (22) 23 Other funds (0) 2 (675) 809 These fi nancial investments consist principally of investments in Gottex fund of funds, some of which are listed on the Irish Stock Exchange, mainly in market neutral and asset based funds, and investments held by GFMH ABL Fund Limited ( GFMH ABL ). The fair value is determined in the same manner as in the year ended 3 December 20 and prior years, by management based on the net asset value of the Group s investments, as communicated by the managers or independent administrators of the investment funds. In the six months to, GFMH ABL redeemed part of its outstanding shares in equal proportions for all shareholders. The Company and the non-controlling interest shareholders of GFMH ABL received USD 0,000 each. Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

15 Overview Financials Interim Report June Income tax (credit) / expense Current tax current year (24) 7 Current tax prior year (2) 99 Current tax (26) 80 Deferred tax current year (60) (69) Deferred tax prior year (8) 36 Deferred tax (68) (655) (744) 55 Effective Group tax rate % The effective tax rates of the Group for the six months to and the six months to have been distorted by the occurrence of varying trading profi ts and losses within the various tax regimes of the Group. 9. Earnings / (loss) per share Basic earnings / (loss) per share is calculated by dividing net profi t / (loss) for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. Diluted earnings / (loss) per share is calculated by dividing the net / (loss) profi t attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares Net (loss) / profit attributable to ordinary equity holders of the parent for basic earnings per share and diluted earnings per share (5,540) 395 Number 000 Weighted average number of ordinary shares (excluding treasury shares) for basic earnings / (loss) per share 25,92 28,645 Adjustments for dilutive potential ordinary shares 637 2,04 Weighted average number of ordinary shares (excluding treasury shares) for diluted earnings / (loss) per share 25,829 30,686 Potential ordinary shares comprise the expected dilutive effect of those equity awards detailed in note 7.

16 6 Gottex Fund Management Holdings Limited Notes to the Unaudited Interim Condensed Consolidated Financial Statements 9. Earnings / (loss) per share (continued) Basic (loss) / earnings per share (0.22) 0.0 Adjustments for dilutive potential ordinary shares - - Diluted (loss) / earnings per share (0.22) 0.0 Basic (loss) / earnings per share (0.22) 0.0 Acceleration of personnel charges Revaluation of investments in respect of GFMH ABL (0.0) Impairment of receivables Acquisition costs expensed *Adjusted basic (loss) / earnings per share (0.05) - Diluted (loss) / earnings per share (0.22) 0.0 Acceleration of personnel charges Revaluation of investments in respect of GFMH ABL (0.0) Impairment of receivables Acquisition costs expensed *Adjusted diluted (loss) / earnings per share (0.05) - * The Group has presented an adjusted (loss) / earnings per share for the periods ended and in order to show a fi gure that Management believes is more representative of the results of the periods. The adjusted earnings per share have been calculated by adjusting for the share of loss / (profi t) attributable to the Group in respect of the revaluation of the investment held in GFMH ABL, by adding back the impairment of receivables, by adding back the acceleration of personnel charges and by adding back the non-recurring acquisition costs. The investment in GFMH ABL was made in 2008 in order to preserve certain lender concentration limits within the ABL Fund and the impairment in receivables relates to the full provision of the loans made to certain funds in prior periods. Management do not consider these losses/ (profi ts) to be part of the core operations of the Group. Potential ordinary shares are treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share from continuing operations. The expected effect for the six months ended and the six months ended of the Group s potential ordinary shares would be antidilutive and therefore has been excluded from the calculations above. 0. Dividends In the six months to the Company paid no dividend to its shareholders (20: USD 57,000). Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

17 Overview Financials Interim Report June Notes to the Unaudited Interim Condensed Consolidated Financial Statements. Investment in joint venture EDEX On January 202, EDEX, a limited liability company, was formed in Delaware, with 00,000 Class A units at a nominal value of USD 0.50 per unit. GFM US invested in 5,000 Class A units and an unrelated third party, Eden Rock Partners Limited ( Eden ) invested in the remaining 49,000 Class A units. A limited liability company agreement (the Agreement ) was executed dated 27 March 202. It provides for the rights and liabilities of members, and the management of EDEX. The signatories of the Agreement are GFM US and Eden, the members of EDEX. Although GFM US owns 5% of the units of EDEX, it controls the Company on an equal basis with Eden, under the contractual rules of the Agreement via a Board of Managers. The Board of Managers has control over the strategic fi nancial and operating decisions of EDEX. Furthermore under the contractual rules of the Agreement GFM US is entitled to distribution of 50%, an equal distribution to Eden. The Group has accounted for EDEX as a joint venture and has recognised 50% of its assets and liabilities. LUMA In the year ended 3 December 20, LUMA was accounted for as a joint venture. GFM Sàrl acquired the remaining 50% of LUMA for USD 50,000 on January 202 and LUMA was therefore consolidated into the Group from that date. The acquisition date fair value of assets and liabilities acquired was USD 59,000 and the negative goodwill arising of USD 9,000 has been credited to the income statement in the six months to. 2. Investment in associates At At 3 December 20 UCITS 4,529 7,070 Gottex US Management Sàrl, SICAR ( GUS ) ,529 7,2 UCITS In the six months to, the Group redeemed a proportion of its holding in UCITS, and at the Group controlled 33% of UCITS. At, the Group carried a receivable of USD.2 million, which was received in July 202. Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

18 8 Gottex Fund Management Holdings Limited Notes to the Unaudited Interim Condensed Consolidated Financial Statements 3. Trade and other receivables At At 3 December 20 Current debtors Trade debtors 9,595 9,020 Amount due from related parties Other debtors 2,968 6,032 Prepayments and accrued income,933 2,320 Total trade and other receivables 5,266 8,226 The Group has made loans to funds for which it acts as investment manager. At the carrying value of these loans was USD nil million (3 December 20: USD 3.6 million). At 3 December 20 the loans were held within other debtors in trade and other receivables. The Group carried out an impairment review at where the carrying amount of the loans was compared to their recoverable amounts and it was concluded that an impairment of USD 3.9 million was required (3 December 20: USD 2.4 million) against the full carrying amount of the loans. A provision of USD 3.6 million and USD 0.3 million was made in total against the loan assets and the associated interest debtors respectively. 4. Trade and other payables At At 3 December 20 Current liabilities Trade creditors 6,376 6,87 Amount due to related parties Other tax and social security,796 2,23 Other creditors,958 3,309 Accruals 6,36 8,858 6,540 20,532 Non-current liabilities Accruals and deferred income,578 3,95 Total trade and other payables 8,8 24, Capital At At 3 December 20 Number of Nominal Value Number of Nominal Value Allotted and fully paid capital Shares CHF 000 Shares CHF 000 Ordinary CHF.00 each 30,693,803 30,694 30,693,803 30,694 Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

19 Overview Financials Interim Report June Non-controlling interest At At 3 December 20 At January 0,63 6,58 Share of total comprehensive (loss)/income (95) (79) Issue of ordinary shares - (302) Cash paid to GFMH ABL Non-controlling interest holders (0) (,30) Cash received from UCITS Non-controlling interest holders - 5,7 Dilution and deconsolidation of UCITS - (8,465) Movement in share-based payment reserve Reclassification of non-controlling interest (205) - 9,546 0,63 The share of recognised income and expense is comprised of the profi t for the period attributable to non-controlling interest and a share of the translation reserve. The profi t for the period ended attributable to non-controlling interest is calculated using a non-controlling interest percentage share of 8.76 per cent, excluding GFMH ABL. The non-controlling interest percentage at was 8.76 per cent. The profi t for the period ended 3 December 20 attributable to non-controlling interest was calculated using a blended noncontrolling interest percentage share of 8.99 per cent for the non-controlling interests of the Group, excluding GFMH ABL in 20 and UCITS. The blended rate was a mixture of the opening non-controlling interest percentage of 9.22 per cent and the changes in the year to the non-controlling interest percentage through the partial exercise of the GUS put option. The non-controlling interest percentage at 3 December 20 was 8.76 per cent. The Company has a call option to purchase the remaining shares in GUS, for a fi xed ratio of shares in the Company, and the shareholders of GUS have a put option to sell their shares to the Company in return for a fi xed ratio of shares in the Company. These options are triggered upon certain events. There is not expected or intended to be any net transfer of value on the exercise of either option and therefore neither option is considered to have any underlying value. In addition, the non-controlling interest of 50 per cent of GFMH ABL was included at (3 December 20: 50 per cent). 7. Share based payments The movement in equity for share based payments was: Note At January 0,678 3,355 Recognised in the income statement 6,538,768 Less amount included in non-controlling interest (45) (53) Reclassification / utilisation during the period (2,269) (2,550) At 30 June 9,802 2,420 In the six months ended the charge for share based payments related to the following types of awards: Note Share awards 968,238 Share options 7 24 The LTIP plan ,538,768

20 20 Gottex Fund Management Holdings Limited Notes to the Unaudited Interim Condensed Consolidated Financial Statements 7. Share based payments (continued) New equity awards in the six months to The Group made restricted shares awards in April 202 which formed part of the annual bonus awards to employees for the year ended 3 December 20. The fair value of these awards of USD 0.5 million is based on the value of the bonus awarded to employees. The employees are entitled to accrued dividends during the vesting period. The share awards will vest over a two year period in equal portions, vesting evenly on each anniversary of the date of award and the only vesting condition is that the participant is in the employment of the Group for this period. Although these equity awards were not legally granted until 202, the Directors believe that it is appropriate to recognise, and have recognised the expense for these equity awards over a performance period commencing April 20 as employees began rendering services from that date. In addition, the Group made equity share awards with a fair value of USD 5.3 million to eight key employees in March 202. These awards will vest on 3 December 205, and the vesting is dependent on the achievement of set profi tability levels and net new business within the Group over the vesting period, as well as the continued employment of the relevant employees. Employee Benefit Trust ( EBT ) In 2007, the Company established an EBT in order to benefi t all employees of the Group. The trustee of the EBT is RBC cees Trustee Limited. The EBT has been consolidated within these unaudited interim condensed consolidated fi nancial statements. At, the EBT held 4,87,243 shares in GFMH which had a fair market value of USD 2.3 million (the price per share at 30 June 202 was USD 2.52). At 3 December 20, the EBT held,853,480 shares in GFMH which had a fair market value of USD 5. million (the price per share at 3 December 20 was USD 2.77). 8. Contingent liabilities Arbitration At, the Group remains in arbitration with two third party marketing agents. Despite this process having been ongoing for a signifi cant period of time, the arbitration is still in early stages and Management are not able to forecast or quantify the likely outcome. On this basis Management have made no further provision other than amounts for legal costs. Management continue to believe that the exposure, if any, is unlikely to be more than the claimants initial indication of USD million. 9. Subsequent events Acquisition of Penjing On 9 August 202, the Group acquired the entire share capital of Penjing Asset Management ( Penjing ), which is based in Hong Kong, and is one of the primary Asian alternative asset management providers. Penjing has approximately USD 408 million of assets under management as at. Management believe the acquisition provides compelling strategic benefi ts to the Group, including establishing a leading local organisation in a region of strategic importance from an investment and an asset raising perspective. The combined business will drive the Group s expansion of Asian investment services on an accelerated and much broader scale, both locally and globally. The Group also expects to benefi t from investment management, distribution and cost synergies. Total consideration is comprised of a combination of cash and shares in GFMH. At completion, an initial cash amount was paid of USD 2.0 million and the initial number of shares issued was 862,069. A further cash consideration of up to a maximum of USD 2.0 million and 862,069 shares will be paid over the two years following completion. This consideration is contingent on the retention level of Assets under Management of Penjing and in certain cases, the retention of key employees. Management estimate that the total costs of the acquisition will be approximately USD 0.7 million, of which USD 0.5 million has been expensed in the income statement in the period to. Management is in the process of determining the fair value of the purchase price of the acquisition and the fair value of the assets and liabilities acquired. These and other details relating to the acquisition will be disclosed within the consolidated fi nancial statements at 3 December 202. Reviewed by Ernst & Young Ltd, refer to Review Report on page 6.

21 Overview Financials Interim Report June Share buyback At an extraordinary general meeting of the Company on 8 August 202, a share buyback programme of a maximum of,750,000 shares was approved by the shareholders. The objective of the programme is to offset the dilution effect of the newly issued shares which form part of the consideration for the Penjing acquisition. Such authority expires on the earlier of 8 February 204 or the conclusion of the Company s annual general meeting in 203. At the date of the approval of these interim consolidated condensed fi nancial statements, 5,000 shares had been acquired by the Group. Issue of shares On 6 August 202 the Company issued 862,069 new ordinary shares, in order to partially satisfy the share consideration due following completion of the acquisition of Penjing. GUS put option On 3 September 202 a shareholder of GUS provided a notice to the Company to partially exercise his put option to exchange a proportion of his shares in GUS in exchange for a fi xed ratio of shares in the Company. The number of Company shares that is expected to be issued to the shareholder as a result is,78,525 shares. This will reduce the non-controlling interest percentage share held by the US shareholders of GUS to approximately 5.2 per cent. In addition this is expected to result in the consolidation of GUS in the consolidated fi nancial statements of the Group at 3 December 202, the effect of which is not expected to be material.

22 24 Gottex Fund Management Holdings Limited Offi ce addresses United Kingdom Gottex Asset Management (UK) Ltd. 5 Savile Row London WS 3PD United Kingdom Tel: Fax: Switzerland Gottex Fund Management Sàrl Avenue de Rhodanie Lausanne Switzerland Tel: Fax: USA Gottex Fund Management Limited 28 State Street 40 th Floor Boston MA 0209 USA Tel: Fax: Gottex Fund Management Limited 780 Third Avenue 32 nd Floor New York NY 007 USA Tel: Fax: Gottex Fund Management Sàrl Dreikönigstrasse 3a 8002 Zürich Switzerland Tel: Fax: Luxembourg Gottex Partners Sàrl 2 Rue Guillaume Kroll L 882 Luxembourg Tel Fax Hong Kong Gottex Fund Management (Hong Kong) Ltd. Suite F Henley Building 5 Queen s Road Central Hong Kong Tel: Fax: Gottex Fund Management Holdings Limited Ogier House St Julian s Avenue St. Peter Port, Guernsey GY WA, The Channel Islands Tel: Fax: Gottex Fund Management Holdings Limited Ogier House, St Julian s Avenue, St. Peter Port, Guernsey, GY WA, The Channel Islands