Interim Management Statement for the period to 31 October 2009

Tuesday, 17. November 2009 06:50
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Interim Management Statement for the period to 31 October 2009
GAM Holding Ltd. announces business development in line with
expectations - strong balance
sheet following successful separation from Julius Baer Group Ltd. -
employee long term
incentive plan in place - new appointments made to reinforce
corporate governance.

By the end of October 2009, Group assets under management ('AuM') had
increased in line with
expectations to CHF 113 billion from CHF 105 billion, excluding Artio
Global Investors, at the end of
June 2009. AuM at Swiss & Global Asset Management ('Swiss & Global')
increased to CHF 71 billion
(including CHF 10 billion of funds distributed by Swiss & Global but
managed by GAM), while AuM at
GAM increased to CHF 52 billion from CHF 49 billion at the end of
June 2009.

Year-to-date Swiss & Global has seen solid inflows into both its
traditional and private label funds
businesses. Clients continue to invest primarily into the range of
attractive fixed income and commodity
products, while not yet re-committing to equities. GAM has
experienced small but positive net new
money since the end of June 2009, predominantly into the new fixed
income range with the higher
margin alternative products still showing modest net outflows. The
institutional alternative segment
showed inflows and an encouraging pipeline of future business, while
the newly developing range of
UCITS III alternative funds is starting to attract interest from
European wealth managers.

GAM Holding Ltd's balance sheet remains healthy with net tangible
assets (excluding the goodwill,
brand and intangible assets relating to the 2005 acquisition of GAM)
of over CHF 1 billion. The
successful completion of the IPO of Artio Global Investors on the New
York Stock Exchange, which
closed on the 29 September 2009, resulted in net proceeds of USD 621
million, which, together with an
increase in the carrying value of the retained stake of 27.9% to its
fair value, results in a gain of
approximately CHF 850 million.

Given its strong capitalisation and cash position GAM Holding Ltd.
does not envisage refinancing the
CHF 150 million bond which expires in March 2010.

In a special one-time decision to mark the independent listing of GAM
Holding Ltd., the Board of
Directors approved a long term incentive plan which granted options
over the company's shares to
every officer and employee of the Group. The options were granted on
28 October 2009 with a strike
price of CHF 12.28, the closing price on that day. The total number
of shares over which options were
granted was 30.27 million. The options will vest over three years
but, save in certain exceptional
circumstances (not including change of control events), will only be
exercisable at the end of this period.
The Board has determined that equity settlement will be satisfied
principally by the purchase and use of
treasury shares with the intention to limit dilution for shareholders
to less than 5%.

Consistent with its new independent status, further corporate
governance appointments have been
made. Marc-Alan Groeflin will join the company as Group Head of
Internal Audit on 1st December 2009
and Christina Lusti joined on 1st November 2009 in the role of
Company Secretary. Marc-Alan was
previously a Partner in Business Risk Services with Ernst & Young and
a Director in Internal Audit
Services with PriceWaterhouseCoopers. Christina Lusti was previously
a member of the legal
department of Zurich Financial Services.

GAM Holding Ltd. is continuing its active search for two new
Directors to join its Board. It remains the
company's intention to place nominations before shareholders at the
AGM in April 2010.

GAM Holding Ltd. will publish its FY09 results on 2nd March 2010 and
its results for H1 2010 on 10th
August 2010. The Annual General Meeting in 2010 will be held on 13th
April 2010 and GAM Holding Ltd
will release an Interim Management Statement reflecting developments
in the first quarter of 2010 on
the same day. A further Interim Management Statement reflecting
developments in Q3 2010 is currently
expected to be published on 15th November 2010.

Media Relations: Jürg Wildberger, Tel. +41 (0)43 344 4242
Investor Relations: Thomas Schneckenburger Tel. +41 (0)44 256 8833

About GAM Holding Ltd
GAM Holding Ltd is an independent, well diversified asset management
business, with a focus on the
manufacturing and distribution of investment products and services.
GAM Holding Ltd, whose shares are listed on the SIX Swiss Exchange
and form part of the Swiss Market Index Mid
(SMIM) with the symbol "GAM", has Group AuM of CHF 113billion as at
the end of October 2009. It employs over
1,000 staff in more than 13 countries and 16 locations, including
Zurich (head office), Bermuda, Cayman, Dubai,
Dublin, Frankfurt, Geneva, Hong Kong, Isle of Man, London, Los
Angeles, Luxembourg, Milan, New York and

For more information:

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GAM Holding Ltd
Klausstrasse 10 Zürich Switzerland

Listed: Main Market in SIX Swiss Exchange;

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