Media Release 2 September H 2009 INTERIM RESULTS

Transcription

1 Media Release 2 September H 2009 INTERIM RESULTS CONTINUING POSITIVE PERFORMANCE; HEDGE-FUND ENVIRONMENT IMPROVING FURTHER Gottex Fund Management Holdings Limited, a leading independent global alternative asset management group (Gottex or the Group), announces its interim results for the six months ended 30 June Highlights: Continuing positive performance in 2009 with core products outperforming relevant hedge fund, bond and equity indices. Further evidence of expected return of institutional investors to the hedge fund sector later this year. Financial performance impacted by reduced levels of assets: - Gross revenues of USD 46 million (down 51% on 1H08: USD 93 mln); - Attributable profits of USD 8.0 million (down 74% on 1H08: USD 30.4 mln; down 36% on 2H08: USD 12.5 mln); and - Basic EPS of USD 0.28 (down 73% on 1H08: USD 1.03). Strong balance sheet: cash reserves of USD 27.8 million and no debt. After successful completion of initiatives announced in January 2009 Gottex is now concentrating on future developments. Plans for 2H 2009 include: - build on positive performance of core Gottex products; - advance recent product launches, like the multi-asset endowment product and the direct lending product; - continue to develop growing traction of Gottex Solutions Services and its Managed Account Platform; and - develop new products adapted to the new regulatory environment. Commenting, Joachim Gottschalk, Chairman and Chief Executive Officer, stated: As the first six months of 2009 progressed, we have seen a gradual recovery in the hedge fund sector with underlying liquidity returning and strong positive performance year to date. We are pleased that our core market neutral and portable alpha strategies have performed well and delivered strong investment performance, outperforming their relevant indices. The market environment continues to improve as institutions are returning to the sector and we expect this movement to gather momentum going into Looking ahead, we are confident that Gottex will benefit from the investment opportunities and positive trends in the market as well as from the consolidation in the alternatives industry. We are confident about our future, but we only expect to see asset growth later in the year as institutional investors return to the market and we start to see the benefits from our new initiatives. 1

2 For Additional Information Gottex Fund Management Holdings Citigate Dewe Rogerson Andre Keijsers Michael Berkeley / Nicola Smith Tel: Tel: There will be an analyst and investor conference call in English at 9am CET (8am UK time) today. For dial-in details please contact Kate Lehane at Citigate Dewe Rogerson (kate.lehane@citigatedr.co.uk). Gottex will announce its Q trading update on 21 October 2009 and release its 2009 pre-close statement on 26 January Assets As previously announced, the Group s total fee-earning assets amounted to USD 8.2 billion as at 30 June 2009, down 15% from USD 9.6 billion as at 31 December Gottex Solutions Services (GSS) attracted USD 90 million in assets during the first half of the year. GFM subscriptions for the same period amounted to USD 10 million while GFM redemptions were USD 1.1 billion and performance had a positive impact of USD 10 million on AuM over the period. The USD foreign exchange weakness increased AuM by USD 210 million while deleveraging, rebalancing and other factors reduced AuM by USD 750 million during these six months. At 31 July 2009, 88% of the Group s AuM stemmed from institutional investors. Gottex was awarded an investment and advisory mandate by Nestlé Capital Advisers S.A. effective as of July 2009, which we believe is part of a trend in our industry of larger investors moving towards more customised offerings combining hedge fund products and related services. The development of fee-earning assets across Gottex products during this period is as follows: (USD Billions) Dec 2008 Subscrip -tions Redemptions Performance FX & Others Jun 2009 Market Neutral & Directional Strategies Asset Based Strategies Enhanced Index Products Advisory Mandates Total GFM assets GSS assets Total assets 1) ) Client assets represented in both GFM and GSS amount to USD 90 million. Note: change percentages are actual; amounts are rounded and might not add up. 2

3 New initiatives After the successful completion of the initiatives announced in January 2009 we are now concentrating on future developments. Our plans for 2H 2009 include: Use the positive performance of our market neutral and portable alpha business as platform for further growth in these products. Advance recent product launches, such as the multi-asset endowment product and the direct lending product. Starting in Q209, GSS attracted its first external clients for its managed account platform and outsourced service offering. Gottex will build on this growing traction to provide institutional investors access to market leading services and infrastructure that facilitate hedge fund investing with increased transparency, control and risk analytics. Gottex has identified various key trends in the post-2008 market place and has started to develop new products adapted to the new regulatory environment leveraging off the Group s key competencies. Gottex plans to participate more actively in the upcoming industry consolidation by integrating or partnering with complementary teams and firms thereby broadening our product and service range. Financials Gross revenues for the period decreased 51% to USD 46.1 million compared to USD 93.1 million for the first half of 2008, in line with a reduction in assets of nearly 50% during that period. For similar reasons, management fees decreased by 48% to USD 44.1 million compared with a year earlier. As a result of Gottex s products trading below their high watermark, there were no performance fees in 1H09 versus USD 2.1 million in 1H08. Referral fee expenses during the first half of 2009 amounted to USD 9.7 million versus USD 19.9 million 12 months earlier. 1H09 referral fee expenses represented 21% of gross revenues, similar to 1H08 but which we expect to proportionally decline during the remainder of the year. Personnel-related expenses fell by 20% from USD 26.0 million in 1H08 to USD 20.8 million in 1H09. The number of Gottex employees at 30 June 2009 was 118, down from 132 at 30 June Other operating expenditure equaled USD 6.4 million compared to USD 9.1 million for 1H08, driven by our cost control initiatives introduced earlier this year. The company is on course with its planned 30% reduction of its 2008 operational cost base, but new corporate initiatives such as Gottex SJC Capital, GSS and the share awards resulting from the share repurchase programme have since added to our cost base. Accordingly, operating profit was USD 9.2 million, a decrease of 76% on the previous year. During 1H09, the Group benefited from a one-off tax recovery of USD 0.9 million. 3

4 Consolidated Income Statement (USD mln) 1H H 2008 Change (%) Management fees % Performance fees % Advisory fees % Structure and leverage fees % Gross revenues % Total referral fee expense (9.7) (19.9) -52% Gross profit % Personnel - share based payments (4.5) (5.7) -20% Personnel expenses other (16.3) (20.3) -20% General and administrative cost (5.3) (6.3) -16% Marketing and representation cost (1.2) (2.8) -58% Operating profit % Finance income % Finance costs 0.0 (0.4) -100% Changes in financial investments (0.2) (0.2) -4% Share of associates (0.1) (0.0) 408% Profit before tax % Income tax expense (0.2) (4.4) -96% Net profit % Minorities % Profit attributable to shareholders % Weighted average number of shares for 1) 28,192 29,425-4% basic EPS calculation (millions) Basic EPS (USD) % Weighted average number of shares for diluted EPS calculation (millions) 29,824 30,283-2% Diluted EPS (USD) 2) % 1) The number of shares used in calculation of basic EPS excludes any shares held by the Employee Benefit Trust, which are held related to unvested share or option grants. 2) Calculated after adjustment of net profit for distribution cost of dilutive shares. Note: change percentages are actual, amounts are rounded. Consolidated Balance Sheet (USD mln) Jun 2009 Dec 2008 Change (%) Tangible assets % Financial investments % Other non-current assets % Total non-current assets % Trade debtors & other receivables % Cash and cash equivalents % 4

5 Current assets % Total assets % Total equity % Non-current liabilities % Trade creditors % Other payables % Current tax liabilities and provisions % Current liabilities % Total equity and liabilities % Note: change percentages are actual, amounts are rounded. Outlook The hedge fund market environment continues to improve supported by the twin pillars of a strong rebound in performance and better underlying market liquidity. After evaluating the financial recovery during the first half of 2009, we believe institutional investors have started to execute new investments, and institutional allocations to the hedge fund sector should accelerate by early As for Gottex we expect growth in assets in line with this process. Gottex remains focused on its core business and a select number of new initiatives, but will continue to work on further diversification of its product and service range. The company expects to benefit from the consolidation in the hedge fund industry, supported by the natural gravitation by institutional investors to larger, well-capitalised players and the opportunity to integrate complementary teams and firms. About Gottex Fund Management Holdings Limited Incorporated in Guernsey, Gottex is the holding company of a leading independent global alternative investment management group whose core business is providing investment management services to a diversified range of hedge funds and funds of hedge funds. In this capacity, the Gottex group provides portfolio selection and asset allocation advice, as well as risk management and investment monitoring and advisory services to a broad and diversified institutional clientele. The Gottex group also structures and manages specialised fund of hedge funds, managed accounts, real asset funds and provides related services, including a managed account platform and outsourced middle office services, through its subsidiary Gottex Solutions Services. With offices in Guernsey, Lausanne, London, Hong Kong, New York, Boston, Luxembourg, Zurich and Dubai, the Gottex group advises funds that are invested with more than 150 hedge fund managers around the world, investing in a wide range of strategies and geographies on behalf of predominantly institutional investors. As at 30 June 2009, Gottex had USD 8.1 billion of assets under management and USD 0.1 billion of assets with Gottex Solutions Services. 5