ASSET MANAGEMENT: SWISS

November 15, 2010 at 10:37 pm | Posted in Economics, Eurozone, Financial, Globalization, Research | Leave a comment

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Assets under management

Julius Baer Group:

Interim Management Statement for the first ten months of

2010

Julius Baer Group Ltd.

Fri 11/12/10

Julius Baer Group Ltd.
Group Communications
Bahnhofstrasse 36
P.O. Box
CH-8010 Zurich
Switzerland
Telephone +41 58 888 1111
Fax +41 58 888 5144
http://www.juliusbaer.com
group.comm@juliusbaer.com

Julius Baer Group: Interim Management Statement for the first ten months of 2010

Assets under management CHF 175 billion, up 14% since year-end 2009 – Net inflows well into the target range

Zurich, 12 November 2010 — Julius Baer Group’s assets under management (AuM) rose to CHF 175 billion at the end of October 2010. Including the acquisition of ING Bank (Switzerland) Ltd, this represents an increase of 14% vs. year-end 2009. Total client assets increased by 12% to CHF 271 billion.

The year-to-date AuM increase was supported by a positive market performance, whilst the Swiss franc currency translation impact was negative as a result of the decline of the euro and the US dollar. Net new money inflows accelerated the momentum that started to build up during the first half of this year and have grown at an annualised pace well into the Group’s 4-6% medium-term target range in the first ten months. All regions contributed positively, with the strongest increase coming from the growth markets Asia, Latin America, Middle East and Russia & Eastern Europe, as well as from the onshore German business.

Whilst the gross margin was year-to-date slightly below the level of the first half of 2010 (107bps), it was ahead of the level achieved in the second half of 2009 (103 bps). Whereas client transaction and trading volumes continued to be subdued and volatile, the Group continues to develop and implement initiatives that are expected to support and strengthen the gross margin over the medium term.

Relative to the 63.4% reported in the first half of 2010, and calculated on the same basis, the cost/income ratio for the first ten months of 2010 was slightly more elevated. This increase was attributable to the gross margin development and due to selective further investments related to ongoing business initiatives.

The Julius Baer Group continued to manage its balance sheet conservatively and maintains a solid capital base. The BIS tier 1 ratio stood at 23.6% at the end of September 2010. The enhancement of the Basel II framework, which will be implemented by 1 January 2011, will mainly impact the market risk weightings. Pro forma for this change, the BIS tier 1 ratio was approximately 22%.

The Swiss Federal Department of Finance recently announced it will open official negotiations with Germany and the UK on tax matters. A successful conclusion of these negotiations would provide German- and UK-resident clients of Swiss banks the opportunity to regularise any undeclared assets whilst maintaining their financial privacy. Julius Baer has accomplished a very strong international diversification of its client base since 2005, particularly into emerging markets. As a consequence, based on the assumptions that can realistically be made today, Julius Baer strongly believes that any potential future negative impact on AuM will be more than offset by continued strong inflows, even if other EU countries were to enter into similar negotiations with Switzerland. Julius Baer therefore sees no reason to adjust its medium-term net new money target range.

Julius Baer Group’s detailed financial results for the full year 2010 are scheduled for release on 7 February 2011.

Contacts:

Media Relations Tel. +41 (0)58 888 8888
Investor Relations Tel. +41 (0)58 888 5256

About Julius Baer

The Julius Baer Group is the leading Swiss private banking group, with an exclusive focus on servicing and advising private clients. Julius Baer’s total client assets amounted to CHF 271 billion at the end of October 2010, with assets under management accounting for CHF 175 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating bank to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and form part of the Swiss Market Index (SMI) of the 20 largest and most liquid Swiss stocks.

Julius Baer employs a staff of over 3 500 in more than 20 countries and some 40 locations, including Zurich (head office), Dubai, Frankfurt, Geneva, Guernsey, Hong Kong, London, Lugano, Milan, Monaco, Montevideo, Moscow and Singapore.

For more information visit our website at www.juliusbaer.com

Disclaimer Regarding Forward-looking Statements and Financial Information

Forward-looking Statements

This media release by Julius Baer Group Ltd. (“the Company”) includes forward-looking statements that reflect the Company’s intentions, beliefs or current expectations and projections about the Company’s future results of operations, financial condition, liquidity, performance, prospects, strategies, opportunities and the industries in which it operates. Forward-looking statements involve all matters that are not historical facts. The Company has tried to identify those forward-looking statements by using the words “may”, “will”, “would”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “seek”, “plan”, “predict”, “continue” and similar expressions. Such statements are made on the basis of assumptions and expectations which, although the Company believes them to be reasonable at this time, may prove to be erroneous.

These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause the Company’s actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Important factors that could cause those differences include, but are not limited to: changing business or other market conditions, legislative, fiscal and regulatory developments, general economic conditions in Switzerland, the European Union and elsewhere, and the Company’s ability to respond to trends in the financial services industry. Additional factors could cause actual results, performance or achievements to differ materially. In view of these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. The Company and its subsidiaries, its directors, officers, employees and advisors expressly disclaim any obligation or undertaking to release any update of or revisions to any forward-looking statements in this media release and any change in the Company’s expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

Financial Information

This media release contains certain pro forma financial information. This information is presented for illustrative purposes only and, because of its nature, may not give a true picture of the financial position or results of operations of the Company. Furthermore, it is not indicative of the financial position or results of operations of the Company for any future date or period.

Julius Baer Group Ltd.
Group Communications
Bahnhofstrasse 36
P.O. Box
CH-8010 Zurich
Switzerland
Telephone +41 58 888 1111
Fax +41 58 888 5144
http://www.juliusbaer.com
group.comm@juliusbaer.com

Julius Baer Group:

Interim Management Statement for the first ten months of 2010

Julius Baer Group Ltd.

Fri 11/12/10

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