Gottex Fund Management has reported strong performance from its core products in the six month period ended 30 June 2014.
The firm’s bond substitution product, the alternative credit product, returned +4.9 per cent; its portable alpha multi index product +11.8 per cent; market neutral products +3.0 per cent; and multi-asset products +4.9 per cent.
The EIM transaction will complete this month, with operational cost synergies now estimated to reach USD15 million per annum and to be fully in place by Q2 2015.
Gottex’s operational loss before acquisition related charges of USD5.7 million (compared to a loss of USD1.4 million for the same period in 2013) is in line with expectations, resulting in an attributable net loss of USD6.2 million after minorities. The group expects to return to profitability next year once cost synergies are fully realised.
Gottex has increased its presence in the liquid multi-asset retail oriented alternative investment space and enhanced its investment team with the addition of James Hughes, the former group chief investment officer of HSBC Insurance and member of the HSBC Global Asset Management board.
Joachim Gottschalk, chairman and CEO, says: “The first half of this year has seen improved performance in our core products, good progress with the integration of the EIM team, and encouraging developments with our Asian expansion, particularly the allocation of a China A-Share contingent, which will allow the launch of a dedicated China equity fund. Whilst lower than expected incentive and average management fees resulted in an operating loss for the company, I am confident that once the group feels the full benefit of the anticipated operational cost synergies, we will return to profitability during the next year.”
