Gottex Fund Management’s total fee-earning assets were USD8.23bn at 30 September 2009, an increase of 0.9 per cent from USD8.16bn at 30 June 2009.
This total consisted of USD8bn in assets under management, down 1.2 per cent from 30 June 2009, and Gottex Solutions Services assets of USD0.3bn.
The decline in AUM was primarily caused by outflows from our run-off share classes and client redemptions, but mostly offset by subscriptions and positive performance.
GFM client subscriptions for the quarter amounted to USD500m, whilst outflows from run-off share classes equalled USD350m and new client redemptions accounted for USD440m.
Foreign exchange contributed USD50m whilst deleveraging and rebalancing factors reduced AUM by USD40m in Q3 2009.
Due to positive performance of the market neutral and portable alpha products, overall net performance was a positive USD170m.
Gottex has continued to return capital to redeeming investors in Gottex run-off share classes. Investors in these share classes have on average received approximately 59 per cent of their original redemptions in cash. Gottex is currently estimating that investors receive 70 to 80 per cent of their original redemption in cash by early 2010.
As at 30 September 2009, AUM contained USD770m in run-off share classes.
GSS has almost trebled assets on the managed account platform with subscriptions of USD170m raising assets to USD260m during Q3 2009.
Joachim Gottschalk, chairman and chief executive, says: “I am very pleased with the ongoing outperformance of our market neutral and portable alpha strategies, which has continued apace in Q3 2009. We are involved in more mandate searches and have seen a meaningful increase in demand from institutional investors, partly driven by our strong performance as well as the quality and transparency of our investment process.
“The same rings true for our subsidiary Gottex Solutions Services, where our institutional clients show a growing interest in first-rate tools, services and infrastructure for more transparent hedge fund investing. GSS has almost trebled the assets on its managedaccount platform and has also won a mandate for its outsourcing activities, such as risk reporting and middle office service.
“Institutional investors have now started to make new hedge fund investments and even though many are still waiting to commit, we saw clear signs of improvement during the last three months. Sentiment continues to improve and together with a positive investment outlook, we expect more clients to make allocations to the hedge fund sector and momentum to increase further.”
