Gottex Fund Management says its financial performance in 2008 was impacted by the turmoil in the financial markets, with gross revenues down 13 per cent on the previous year to USD168m.
Gottex Fund Management says its financial performance in 2008 was impacted by the turmoil in the financial markets, with gross revenues down 13 per cent on the previous year to USD168m.
Attributable profits were USD42.9m in 2008, down 41 per cent on 2007, while basic EPS was USD1.46, down 45 per cent on 2007.
The board has proposed a dividend of USD0.60 per share, compared with USD0.45 the previous year.
Gottex says it has a strong balance sheet, with cash reserves of USD45.4m, net working capital of USD38.4m and no debt.
The restructuring and reopening of its first major market neutral product has been successfully completed with over 80 per cent of investors remaining invested.
It says the restructuring of other market neutral and directional products is in progress and a CHF7m share repurchase programme is underway.
Joachim Gottschalk, chairman and chief executive officer, says: ‘2008 has been a difficult year for the financial services industry and Gottex has not been immune to this. However, our management team is focused on addressing the industry challenges and adapting our products to the new financial environment including the restructuring and reopening of our funds. As such, I am very pleased that more than 80 per cent of investors in our first restructured major market neutral product have decided to remain invested. This is a very satisfactory investor response and we believe shows the continued trust our clients have in our ability to deliver investment performance in these challenging times.’
Gottex’s assets under management amounted to USD9.6bn on 31 December 2008 compared to USD16bn at the end of 2007, representing a decline of 39.7 per cent.
Net client flow was negative by USD1.3bn or eight per cent of total AUM, with subscriptions for the period of USD2.5bn offset by redemptions of USD3.8bn.
In addition, performance caused a decrease of USD3.3bn, while foreign exchange movements and other technical factors had a negative impact of USD1.8bn on AUM during 2008.
