(Bloomberg) -- GAM Holding AG, the Swiss asset manager reorganizing under Chief Executive Officer Alex Friedman, said profitability will fall significantly this year as market volatility continues to baffle its fund managers.

Performance fees in the second half are expected to be similar to the 1.2 million Swiss francs ($1.2 million) earned in the first six months of the year, Zurich-based GAM said in a statement on Thursday. The shares were little changed as the company reported a rise in assets under management and outflows slowed in a key bond strategy.

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