Zurich - Arabstoday
Julius Baer, Switzerland’s biggest dedicated wealth manager, has reported better-than-expected first-half client inflows, driven by Asia and Latin America and lifting its shares. Baer said it attracted 4.9 billion Swiss francs ($6.0 billion) of new client money, at the top end of its medium-term target range for annual growth of 4-6 per cent and beating a forecast for 4.6 billion. Chief Executive Boris Collardi told journalists while he expected some clients to move assets when the deals were finalised, the bank’s target for 4-6 per cent net new money growth should still be achievable. “Despite an increasingly difficult regulatory environment, uncertain capital markets and a strong Swiss franc, the private bank has actually achieved a solid result,” Wegelin analysts said in a note. It said it expected significant inflows from areas like Asia and Latin America to outweigh low growth in the European offshore market where business has come under pressure from a global campaign against tax havens like Switzerland. Baer said in April it was paying Germany 50 million euros ($72 million) to close a tax investigation into undeclared assets of German taxpayers held in secret Swiss accounts. As European clients repatriate their assets, Baer has been building up its presence in Germany and Italy. It said it had very strong inflows in Germany helped by new bankers it hired. Switzerland is currently negotiating deals with Britain and Germany to resolve disputes over untaxed money in Swiss accounts, including a planned withholding tax on deposits. Assets under management fell 2 per cent to 166 billion francs as a currency impact of 8 billion and negative market performance of 1 billion more than wiped out inflows. From / Gulf News