Vontobel continues to deliver very good results
- Pre-tax profit remains significantly higher than in the prior year
- Growth in net new money of 4.3 percent – within the target range
- Wealth Management net new money grows by 6.4 percent, exceeding the
- Asset Management remains focused on higher-margin mandates
- Continued strong demand for structured investment solutions from Digital
- Advised client assets grow by 16 percent year on year to CHF 266 billion
- Vontobel is committed to its 2022 targets
Vontobel has maintained the very positive results trend seen in the first half of 2021, with pre-tax profit for the first nine months of 2021 far exceeding the figure for the same period of 2020. Like in the first six months of the year, all Client Units contributed to the growth in profit. Good and stable gross margins in the business with wealth and asset management clients had a positive impact. The result also benefited in particular from the continued strong demand for structured products from Digital Investing clients, with Digital Investing delivering a 77 percent increase in operating income for the first nine months of 2021 compared to the prior-year period. The very good overall result was also driven by the advised client asset base, which has grown over the years, together with the economies of scale generated by the different platforms. The strong growth in turnover also led to a slight improvement in the cost/income ratio versus the comparative figure after six months. For the first nine months of 2021, Vontobel generated a return on equity that far exceeded its own solid mid-term target of at least 14 percent, while maintaining the same conservative risk profile.
Client trust in Vontobel’s investment expertise and services had a positive impact – as reflected by the annualized growth in net new money of 4.3 percent, which was within the target range of 4-6 percent. The business with wealth management and EAM clients achieved a particularly positive performance with growth in net new money of 6.4 percent, exceeding the target range. Overall, wealth management clients entrusted CHF 3.9 billion of new money to Vontobel over the last three quarters. In the business with institutional clients, Vontobel continued to focus on higher-margin mandates. Institutional client entrusted CHF 2.3 billion of new money to Vontobel, corresponding to annualized growth in net new money of 2.3 percent. Advised client assets totaled CHF 266 billion at the end of September 2021, an increase of 16 percent year on year. This also partly reflects weaker stock markets at the end of the third quarter of 2021 compared to the first half of the year.
“The good net inflow of new money supports our theory that investing is the new form of saving.”
“The result for the first nine months of 2021 underscores Vontobel’s profitability and earnings quality. The business model, with its focus on investment expertise and investment solutions, meets the expectations of our clients and is proving effective. The good net inflow of new money supports our theory that investing is the new form of saving. Growth initiatives in the business with UHNWI within Wealth Management and with Global Banks within Asset Management have continued to pay off as the year progresses. In the future, we will make further investments in the expansion of our business and therefore also in our investment and product expertise as well as technology. We remain confident that we can achieve our own ambitious 2022 targets, while recognizing that no result can simply be replicated,” stated Zeno Staub, CEO of Vontobel.
”Low interest rates and geopolitical as well as general political uncertainty will continue to shape the market environment in the near future.”
Vontobel expects the market environment to remain challenging. Low interest rates and geopolitical as well as general political uncertainty will continue to shape the market environment in the near future. Vontobel believes that the world is only just starting to get back on its feet following the pandemic. Shortages of goods, disrupted supply chains, tight commodity markets and potential price rises are all part of the picture at present.
Fixed income solutions, quant products and ESG-oriented investments are in demand
In the first nine months of 2021, fixed income solutions, products from the quant boutique and investments that incorporate ESG criteria into their investment strategy attracted a particularly high level of demand from investors.
Vontobel is one of the leading Swiss providers of sustainable investment solutions. In 2021, Vontobel expanded its range of ESG bonds and equity funds with the launch of a Green Bond fund, a Sustainable Emerging Markets Debt fund and a Global Impact fund. At present, 97 percent of Vontobel funds incorporate ESG risks into their investment decisions. This figure should reach 100 percent by the end of this year.
At Vontobel, we actively shape the future. We create and pursue opportunities with determination. We master what we do – and we only do what we master. This is how we get our clients ahead. As a globally active investment manager with Swiss roots, we specialize in wealth management, active assetmanagement and investment solutions. We harness the power of technology to deliver a high-quality, individual client experience and to deploy our investment expertise across multiple platforms and ecosystems. We empower our employees to take ownership of their work and bring opportunities to life. We do so based on the conviction that successful investing begins with the assumption of personal responsibility. We continuously scrutinize our achievements as we strive to exceed the expectations of our clients. The registered shares of the Vontobel Holding AG are listed on the SIX Swiss Exchange. The Vontobel families' close ties to the company guarantee our entrepreneurial independence. We consider the resulting freedom as an obligation to also assume our social responsibility. As of September 30, 2021, Vontobel held CHF 292.9 billion of client assets. Around the world and in our home market, we serve our clients from 26 locations.
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