Gottex Fund Management : 2014.07.22 - GFMH - Q2 2014 Trading Update.pdf

Media Release 22 July 2014

Gottex Fund Management Holdings Limited (Gottex), a leading independent global alternative asset management group, announces its trading statement for the quarter ended 30 June
2014. Highlights:
 Combined client assets1 of USD 8.5 billion as at 30 June 2014, with fee earning assets of
Alternative Solutions and multi-asset endowment products stable during the quarter.

 Our low correlated bond substitution product line remains ahead of its benchmarks, generating positive returns ranging from 2.9% to 4.7% YTD, net of all fees. Similarly, our liquid and regulated UK and Scandinavian multi-asset products continue to perform well, adding respectively 4.8% and 5.0% after fees during the first 6 months, while our flagship Asia Fund is positive for the year and added 11.5% on a rolling 12 month basis.

 The company expects the 2014 interim results to show an operating loss (subject to audit and final review). Synergies from the proposed merger transaction will impact during the second half of the year.

 Development of onshore Chinese investment products progressing, with our UCITS RQFII

product launch expected in first quarter of 2015.

 Gottex EIM transaction on track to receive approval by FINMA, the Swiss regulatory authority, during this summer, which remains the only outstanding material condition for completion of the transaction. Synergies expected to exceed USD 12 million, ahead of original target.

Commenting, Joachim Gottschalk, Chairman and CEO, stated:

"Performance of our alternative and multi-asset product lines held up very well during the second quarter. In this light, I am extremely pleased that our low correlated bond substitution products have continued to perform firmly in positive territory for the year to date. Equally impressive have been our Asian investment strategies which, after a challenging start to the year, are now all in positive territory year to date, with our flagship Asia strategy adding 11.5% on a 12 month rolling basis. We are making good progress with FINMA, the Swiss financial regulator, and expect their approval of the EIM merger during the summer. This will allow the combined entity to achieve increased scope, economy of scale and to exploit extended growth opportunities."

For Additional Information

Gottex Fund Management Holdings Citigate Dewe Rogerson

Andre Keijsers Michael Berkeley/Caroline Merrell

Tel: +44 20 7494 5148 Tel: +44 20 7638 9571

1) Includes assets from the merger of EIM Group, which is subject to regulatory approval and completion.

The combined client assets of Gottex and EIM as at 30 June 2014 were USD 8.5 billion (subject to regulatory approval and completion), practically unchanged when compared with combined assets of USD 8.6 billion at 31 March 2014. This total consisted of USD 8.0 billion in assets under management (AuM) and managed account platform assets of USD 0.5 billion.
Excluding managed account platform assets, AuM of USD 8.04 billion was down 1% when compared to USD 8.12 billion at 31 March 2014, due to some small net outflows.

Gottex Assetsi Combinedi

Mar 2014 (USD billion)

Combinedi Jun 2014 (USD billion)

% change

Alternative Solutions BUii) 6.95 6.91 -1% Asian Multi-Manager BUiii) 0.53 0.51 -3% Multi-Asset BU 0.64 0.62 -3% Total GFM assets 8.12 8.04 -1%

LUMA/LUMX assets 0.50 0.45 -9%

Total assetsiv) 8.62 8.49 -1%

i) Subject to regulatory approval and completion.

ii) Of which advisory mandates represented USD 3.0 billion as at Jun 2014 and USD 2.9 billion as at Mar 2014.

iii) Of which advisory mandates represented USD 230 million as at Jun 2014 and USD 190 million as at Mar 2014. iv) Client assets represented in both GFM and LUMA GSS amounted to USD 70 million.

Note: percentage changes are actual, the amounts are rounded.

Our UK and Scandinavian liquid and regulated multi-asset absolute return products showed strong performance during the first half of this year with increases of respectively +4.8% and
+5.0%. Gottex's bond substitution strategies have continued to generate positive performance
in the first half outperforming their benchmark the HFR Conservative Index1 by 0.4% during the period. All these products have generated performance fees during 1H 2014. Our Asia
market independent strategy was up 1.2% for the first half and our US equity portable alpha strategy was up 9.1% during this period.
Gottex and EIM have been closely co-operating with FINMA, the Swiss regulatory authority during this year, and we expect to receive their approval for the merger this summer, after which completion of the transaction will take place. Synergies are expected to exceed our original target of USD 12 million. Our plans for the combined group have been detailed in our statement of 19 June 2014.
Gottex Asset Management (UK), the UK subsidiary of the Gottex Group, received approval as a full scope Alternative Investment Fund Manager (AIFM) from the FCA, under the AIFM Directive.
Edex Recovery Solutions, our joint venture with Eden Rock Group, now manages USD 730 million in distressed hedge fund vehicles after winning a new mandate to manage a USD 95 million distressed hedge fund portfolio.

1) The HFRI FoF Conservative Index consists of funds of hedge funds that primarily invest in conservative strategies.

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Gottex Fund Management Holdings Ltd.

Our outlook remains positive. The anticipated improved performance of alternatives and absolute return oriented products, when compared to an uncertain outlook for longer term bonds, is resulting in growing levels of interest in our products and solutions. In particular absolute return multi-asset and alternative products have become increasingly in demand over the last 6 to 12 months. In terms of our Asian products, a slow start this year, coupled with uncertainty about China's banking industry and short term economic prospects, has delayed investment decisions, but we believe the strong performance and recovery of emerging markets in recent months will considerably improve the outlook for the second half of this year. Next to our core asset management business, we continue to consider non-organic partner and growth opportunities.
Gottex will announce its 2014 interim results on 12 September 2014 and release its Q3 2014 trading update on 21 October 2014. To view the presentation accompanying this release, please visit www.gottexholdings.com/Presentations.aspx.

Incorporated in Guernsey, Gottex is the holding company of a leading independent global alternative investment management group, whose core business is providing predominantly alternative multi-manager and multi-asset solutions and related advisory and risk management services. In this capacity, the Gottex Group provides liquid and regulated multi-asset endowment-style investment products, multi-manager alternative solutions (including market- independent comingled portfolios) and sector-specific single investor vehicles, as well as a selection of Asian-focused funds to a global and diversified institutional and retail clientele.
With offices in Guernsey, Geneva (Nyon), London, Hong Kong, New York, Boston, Luxembourg, Monaco, and affiliates in Shanghai, Melbourne and Auckland, the Gottex Group is present on four continents with over 50 dedicated investment professionals on the ground. As at 30 June 2014, Gottex and EIM had USD 8.5 billion of total client assets.

1) Includes assets from the merger of EIM Group, which is subject to regulatory approval and completion.

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