Ex-Julius Baer boss Boris Collardi left his strategic imprint on the Swiss wealth manager. Seven months into his tenure, new boss Bernhard Hodler is reversing course on some of his predecessor's plans.
Bernhard Hodler has stopped the build-up of an asset management unit at the Zurich-based private bank, he told Swiss business newspaper «Finanz und Wirtschaft» (in German, behind paywall). This amounts to a reversal of plans pursued by his predecessor Boris Collardi, who became a partner at rival Pictet two weeks ago.
«We're convinced that the focus on private banking reduces our conflicts of interest, which clients appreciate greatly. Investors also appreciate our clear positioning», Hodler is quoted by the paper.
More Referrals
It isn't the only about-face from Collardi, according to Hodler: «We've achieved growth so far by hiring private bankers and with acquisitions. We're also reinforcing a third pillar of growth.»
«We have a huge network of 1,400 private bankers and more than 400 billion Swiss francs ($400.8 billion) in assets to grow organically. We want to win more referrals, but also to win a larger portion of our existing clients' funds», Hodler said.
Julius Baer vs Pictet
Responding to investor jitters that Collardi will entice Julius Baer's most talented private bankers to Pictet, Hodler was slightly dismissive: «We respect Pictet as a competitor, but we're convinced that our platform is better in many respects and our offering richer.»
Julius Baer wants to hire roughly 80 private bankers annually, which means the bank effectively has to poach more than 100 to arrive at the net target, Hodler said. «You have to find these people first, and that's not always easy. In Germany for example, we'll interview thirty candidates before we hire someone.»
Unclear Probe
Hodler, previously the bank's long-time risk chief, was mum about Julius Baer reportedly being at the center of a Swiss regulatory probe over its money laundering combating efforts. «I won't comment on whether we're the subject of an enforcement probe, but I can say that I started a project 18 months ago as chief risk officer to improve client documentation.»
He cited stricter demands in the last ten years as well as a shifting client book. «We can only ensure clients are being offered the right products if we ensure that we're always using current client data», Hodler said.
The bank has been tied to the unsanctioned sale of weapons by Swiss defense firm Ruag in Russia, where Julius Baer's top banker was reportedly involved in secret side deals by two top executives of a Swiss state-owned defense firm.
