Vontobel Group attracts sustained inflow of new money in first ten months of 2012

 

Vontobel Group attracts sustained inflow of new money in first ten months of 2012 – Asset Management remains on course for success – combined market organization in Private Banking Germany – issuing platform in area of derivatives creates new business potential

 

At the autumn media discussion held today in the French-speaking region of Switzerland, Zeno Staub, CEO of the Vontobel Group, explained how the business performed during the first ten months of 2012 and outlined Vontobel's strategic initiatives:

 

- The Vontobel Group's client assets totalled CHF 147 billion as of 31 October 2012. Assets under management amounted to almost CHF 96 billion. The increase of over CHF 5 billion since mid-2012 reflects both the continued pleasing net inflow of new money and positive market developments. Despite a brief rise in volumes in September, the development of income was subdued overall.

 

- The Asset Management business is continuing to deliver a successful performance:
the Quality Growth boutique in New York already manages in excess of CHF 30 billion of client and fund assets.

 

- In Private Banking Germany, Vontobel is further strengthening its market and client focus. It is combining its local onshore business with the cross-border business that is domiciled in Zurich and is placing them under joint management.

 

- With the launch of open deritrade, Vontobel Financial Products is making its proven derivatives platform accessible to external issuers, thus enabling a growing client base to make even more effective use of structured products in the area of portfolio management.

 

- Vontobel's cooperation with external asset managers (EAMs) is progressing well: at the end of October 2012, the asset base exceeded the CHF 5 billion mark for the first time.

 

Switzerland has two major international financial centres – Geneva and Zurich – in which Vontobel has been present for decades. "Both the Swiss finance industry and the Vontobel Group have a global focus as well as strong local roots. Thanks to this background – combined with our investment and product expertise – we will be able to continue developing our business successfully even in a more challenging operating environment," stated Zeno Staub, CEO of the Vontobel Group.

 

Sustained inflow of new money confirms client trust

Client assets totalled CHF 147 billion at the end of October 2012, as the positive trend in the first half of the year continued. Vontobel is attracting a broad-based inflow of new money across the Group. In Asset Management, the Quality Growth products that are managed in New York are generating a significantly above-average performance and are also proving increasingly popular in Asia, Europe and the Middle East. With its investment philosophy, the Multi Asset Class (MAC) boutique – which was recently expanded – is also attracting growing interest among institutional investors. Private Banking, which has been managed by Georg Schubiger since 1 August 2012, also succeeded in acquiring new assets from its defined target markets.

 

On the income side, the subdued trends that emerged in the first half of the year have continued, while expenses have remained in line with the previous year thanks to strict cost discipline. Reflecting this focus on costs, Vontobel is gradually growing its business and, at the same time, concentrating on its defined focus markets. In this context the Singapore distribution platform for structured products is continuously being expanded.

 

Trend-setting MAC strategy implemented in Asset Management
The risk-consciousness of investors remains a fundamental issue in the current macro environment, which is characterized by low returns, high volatility and strong correlations. The investment experts at Vontobel Asset Management therefore place the risk budget at the centre of their investment strategy. It is only by implementing active approaches that risks can be managed and market opportunities can be systematically exploited. Vontobel takes account of these factors in its trend-setting MAC strategy.

 

Combining of cross-border and onshore activities in Private Banking Germany
Vontobel is combining its cross-border and onshore activities in its Private Banking business with German clients. This step will ensure an optimized market and client focus and will also create synergy potential. Operational responsibility for Private Banking Germany is being assigned to Roland Rötheli, who currently heads the Zurich-based business with German clients. As a result of this structural change, Frank Wieser, the existing local Head of Private Banking Germany, will pursue a new professional challenge outside the Vontobel Group. The Board of Directors and Group Executive Management wish to thank Frank Wieser for his contribution to the company during the past few years. The post of Managing Director of Bank Vontobel Europe AG will be assumed by Bernhard Heye, who currently serves as COO of the same company.

 

Systematic further development of derivatives business with multi-issuer platform
Vontobel Financial Products is one of the pioneers in the development of automated issuing platforms. Vontobel is now taking its next innovative step forward by opening up its platform to products from third-party providers. The launch of open deritrade® marks the transition to a multi-issuer platform. As a result, it now offers an even broader range of possibilities for the creation of individual structures by professional deritrade® users, who currently already number around 3,000. At the same time, open deritrade® allows for transparent price comparisons of products from different providers. The entirely positive market response to open deritrade® confirms the added value for clients in terms of product diversity and risk management that is associated with the expansion of the platform.

 

Intensification of EAM activities proves effective: CHF 5 billion mark exceeded
Vontobel has, over the last few years, created an excellent name for itself as a solid and reliable partner in the strategically important B2B4C area – i.e. the business it conducts with third-party banks and external asset managers (EAMs) for their clients. As a result, the assets under management reported by the EAM Desk have exceeded the CHF 5 billion mark for the first time. In addition, Transaction Banking has acquired new clients. Vontobel's powerful booking platform is one of the key factors behind this success. Using a state-of-the-art IT infrastructure, Vontobel Transaction Banking offers other financial institutions a comprehensive range of securities settlement services. A total of CHF 147 billion of client assets and around 330,000 securities are now managed by Vontobel. With over 2 million securities transactions and a degree of automation approaching 100%, Vontobel operates the third-largest securities and booking platform in Switzerland.

 

Contacts
Media Relations:	Reto Giudicetti	+41 (0)58 283 61 63
Investor Relations:	Susanne Borer	+41 (0)58 283 73 29
Key dates
2012 results:		6 February 2013
General Meeting of Shareholders 2013:		23 April 2013