press releases 2004 archive

24 December 2004
Issue of Ordinary Shares
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19 December 2004
Directorate Change
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17 December 2004
Acquisition
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24 November 2004
Integrated Asset Management Agreement with Sal. Oppenheim
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07 October 2004
Directors' Dealings
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28 September 2004
Interim Results for the six month period ended 30th June 2004
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Integrated Asset Management plc ('Integrated' or 'the Company'), the alternative asset management and broking group, today announces its interim results for the six month period ended 30th June 2004.

HIGHLIGHTS

 

John Booth, Chairman of Integrated Asset Management plc commented,

'I am pleased to report that during the six-month period ended 30th June 2004, Integrated Asset Managementhas continued to grow and improve its financial performance.'

Operating Review:

GAIM Advisors In a challenging market environment for the whole hedge fund industry, GAIM Advisors has steered a steady course throughout the first half of the year.

Most sub-strategies have reported lacklustre returns as the markets entered a period of transition following last years' military engagement in Iraq. Recently, we have seen a more measured approach, with momentum trades replaced by more fundamental-driven con siderations. We consider that the resurgence of global macro managers is set to continue.

The first half of this year saw the MSCI World Index trade sideways, registering a 2.52% increase, and US ten year bond yields have remained unexciting at an average yield of 4.28%. In this directionless environment most investors have been looking to the Federal Reserve for indicators on the direction of the global economy.

Set against this backdrop, funds of hedge funds have continued to offer the lower volatility and lower risk option with marginally better performance when compared to traditional markets and single strategy investments.

We are able to report that our flagship fund, GAIM Hedge Fund, has outperformed the CSFB Tremont Investable Index with a cumulative return at 30th June 2004 of 1.23% versus 0.96% (annualised 2.48% versus 1.94%). We have also competed well with our peer group in terms of return versus volatility. Total hedge fund assets under management for GAIM Advisors grew by $53 million to $203 million, a 35% increase since January 2004.

We are confident that performance for the remainder of the year will reflect the inherent risk-management qualities of the fund of hedge funds universe and provide steady, uncorrelated returns. We are pleased with the performance of GAIM Advisors, particularly in light of more challenging market conditions and the continued upgrade of our staff which has resulted in higher personnel costs. We expect this investment will yield benefit to the Group in the years to come.

The Company was recently awarded an investment advisory contract with Zenit Alternative Investments SGR, an Italian Hedge Fund manager a company in which Integrated holds a 3% stake. Subject to approval from the Bank of Italy, Integrated will increase its stake in Zenit to 10%. Integrated Asset Management has experienced much success in the Italian market, both in broking and distribution, and plans to capitalise on existing relationships to help grow this business. Currently this advisory contract covers $15 million of assets.

GAIM Paragon

While the financial performance of the business remains somewhat disappointing, the cost-cutting of late 2003 and early 2004 has produced results and the Company continues to operate close to break-even. We do not expect a drastic turnaround during the remainder of the financial year and initiatives are ongoing to pursue all strategic alternatives available for the business.

Interfin Sim SpA

The first half of 2004 improved upon the strong performance of late 2003. The bulk of this growth has been achieved from the success of our recently launched equity derivatives desk. In the first six months the desk has grown to four traders and has been profitable since the outset. Integrated announced on the 6thSeptember that it has entered into an agreement to acquire 100% of the share capital of International Capital Markets SIM S.p.A ('ICM'), the Milan based money broking business and Interfin SIM's main Italian competitor. This acquisition will reinforce ou r position as a dominant player in the Italian money broking market and achieve considerable synergies and cost savings both in overhead and personnel with our existing business once the two entities have been merged. ICM brings strong management with it and is highly regarded in both local and international markets. Until the merger is completed, we expect some short-terms softness in Interfin's business as new management structures are put in place and the cost savings referred to above are achieved. This acquisition reflects the increasing consolidation that is occurring in the brokerage market and demonstrates that Interfin is taking the initiative in this process. We believe it will deliver substantial benefits to the Group. The acquisition remains subject to Bank of Italy approval and Integrated's acceptance of an independent auditors report.

During the remainder of the year we plan to continue our acquisition strategy, especially in the alternative investment sector. I would like to offer my thanks to all our shareholders for their support, and to our growing team of highly committed staff for their continued efforts throughout the past six months.

J.D.S. BOOTH
Chairman

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06 September 2004
Integrated acquires Italian brokerage business
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02 September 2004
Integrated enters the Italian hedge fund market
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30 July 2004
Issue of Equity
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25 June 2004
Directorate Change
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