Swiss wealth and asset manager Vontobel delivers strong first-half results as the wealth management unit turns in a strong performance. However, institutional investors «continue to defer investments» which was reflected in negative outflows. The firm plans to hire over 50 Relationship Managers this year.
Vontobel reported that its wealth management unit delivered «very strong» performance in the first half, with assets under management growing 6 percent to 98.1 billion Swiss francs ($113.7 billion), and reported a Group net profit of 127.6 million, according to first-half results released Thursday.
Outflows in Asset Management
In the first six months of the year, overall assets under management rose 4 percent to 211.9 billion francs compared to 204.4 billion at the end of last year. Net money growth in Wealth Management increased by 8.4 percent in the first six months of the year, which included outflows related to a strict market focus based on its strategy.
Even with the outflows, assets under management in the unit rose to 98.1 billion francs in the first half from 92.6 at the end of last year, helping to increase gross margin 12 basis points to 82 basis points.
Institutional investors «continue to defer investments» which was reflected in negative outflows of three billion francs in Asset Management. Assets under management rose one percent to 108.7 billion, from 107.2 billion at the end of last year.
More Client Advisors
As with other wealth managers, Vontobel is also on an aggressive hiring path and plans to hire more than 50 over the course of the year.
Vontobel hired numerous wealth management experts from a large number of interested professionals, some of whom are now already working for the firm or plan to join in the course of the year. It said it's holding further talks with wealth management professionals who could serve clients in the Swiss home market and selected focus markets in the future.
Uncertainty Set to Presist
At the end of 2022, a total of around 316 advisors served Vontobel‘s wealth management clients.
«Vontobel believes that the current uncertainty is set to persist, but the investment firm is well positioned to navigate this landscape. The war in Ukraine is continuing and geopolitical tensions are undiminished. Fears of recession still loom large and global inflation has not been tamed. This situation is further exacerbated by challenges such as demographic developments and climate change that the world has faced, at least in part, for decades. And finally, the developments of the last two years have left their mark on the financial sector,» said CEO Zeno Staub.
More to follow.
