Julius Baer is ending its independent asset manager experiment: the Swiss private bank will integrate WMPartners by year-end. 

Julius Baer is abandoning its strategy of operating an external asset manager platform, set up after the acquisition of WMPartners and merger of Infidar. The unit had snapped up rivals including Fransad Gestion Wealth Managers in Geneva two years ago and  Zurich-based Wergen & Partner in February.

The bank is suddenly reversing that strategy, ditching the WMPartners brand by integrating the unit into the wider bank by year-end, it said. WMPartners bankers will continue to look after their client relationships, and will be able to use either Baer or a third-party firms as custody banks.

Julius Baer Cites Client Demand

The bank didn't provide a specific reason for the timing and strategic rationale behind the move. The bank will be able to tap WMPartners’ expertise in offering multiple custodians for clients, which meets growing client demand to manage wealth across several custody banks, it said.

«We see a clear growth potential for this business and will further invest in it,» said Yves-Robert Charrue, head of Europe at Julius Baer.

No Organic Growth

Thanks in part to the Werger deal, WMPartners' assets had grown to 4.5 Swiss francs. That translates to scant organic growth since its merger with Infidar in Jahr 2013. The unit hired a new CEO, Daniel Aegerter, in 2015 after Heinz Grueter stepped down.

The former Julius Baer executive hadn't managed to kickstart growth at WMPartners, in part due to a deeply-entrenched culture among its powerful private bankers. 

It is unclear what Aegerter's role will be following the strategy reversal, or whether the move will result in job cuts among WMPartners 40-odd force.

More to follow