A Swiss fund of hedge funds firm has decided to pay its staff more money to retain key talent, despite both the firm and the wider funds of funds industry coming under pressure as they continue to report net outflows.

Gottex Fund Management said in interim results that personnel-related expenses increased from $20.8m in the first half of 2009 to $21.5m this year, while headcount reduced from 118 in June 2009 to 111 a year later.