Zurich-based Vontobel's wealth management business kicked off the year in good form, while its asset management division is facing headwinds.
Vontobel's wealth management business brought in 1.4 billion Swiss francs of new money in the first quarter, reflecting growth of six percent which is at the upper end of its four to six percent target range, the bank said in a trading update Friday. It did not mention whether it had benefitted from the heavy outflows that Credit Suisse has been experiencing.
Things aren't as sanguine in its asset management business, however, which saw net outflows of 1.8 billion francs as clients either stayed out of the markets instead of reinvesting or making new investments, according to Vontobel.
Overall, Vontobel recorded a slight outflow of 400 million francs in the first quarter.
Assets Under Management Up
Assets under management increased by 7.3 billion to 211.7 billion francs from 204.4 at the end of last year. This is an increase of 3.6 percent in the quarter. Contributing factors were a market performance of eight billion, foreign exchange transaction losses of 300 million, and net new money outflows of 400 million.
Due to economic and geopolitical uncertainties, the investment environment remains challenging for clients and therefore also for the bank, according to Vontobel. Management takes a positive view of the figures and sees this as confirmation of its strategic direction.
