The Zurich-based investment house is closing its wealth management business in Hong Kong. It will be transferring its private clients to a competitor from Liechtenstein.
After examining its business model against the current economic and geopolitical situation, Vontobel decided to close its wealth management in Hong Kong, CEO Zeno Staub told a press conference Thursday. Wealthy client accounts are being transferred to Liechtenstein-based private bank LGT.
A finews.com article in July indicated that Vontobel was preparing wealthy clients for the move as it positioned itself to concentrate more on wealth management activities with financial intermediaries, such as external asset managers, banks, and family offices.
Half A Dozen
Around six Vontobel employees are affected by the plans, as finews.com reported. Discussions between Vontobel and LGT were held about a possible transfer of the individuals.
The investment manager had seen an outflow of «several 100 million francs» in assets from clients in the region, Staub said Thursday of the investment managers' financial results, covering the first nine months of the year.
Too Late?
Vontobel launched a private client business in Hong Kong eight years ago, at a relatively late juncture. Ostensibly, the business did not manage to achieve the necessary critical mass for a sustainable franchise.
