Reports

AuM Rises At Julius Baer; Integration Of Merrill Business Dents Gross Margins

Tom Burroughes, Group Editor, London, 15 November 2013

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Julius Baer said its assets under management stood at SFr249 billion ($271.5 billion) at the end of October, a 31 per cent rise from the level at the end of 2012, including SFr48 billion from Merrill Lynch’s International Wealth Management business outside the US.

Julius Baer reported that its assets under management stood
at SFr249 billion ($271.5 billion) at the end of October this year, a 31 per
cent rise from the level at the end of 2012, including SFr48 billion from
Merrill Lynch’s International Wealth Management business outside the US which the
Swiss bank is in the process of buying.

Following the local closing of the IWM transaction in Panama
and on the back of further client asset transfers from various locations
totalling more than SFr5 billion, IWM assets under management rose to around
SFr54 billion, of which SFr34 billion are booked on the Julius Baer platforms
and paid for.

“The IWM integration continues to be on track, with the next
local closings in Bahrain, Lebanon and the
UAE expected to occur before the end of 2013,” Julius Baer said in a statement
today.

Excluding the impact of the IWM acquisition, the rise in AuM
in the first ten months of 2013 was driven by net new money and a positive
market performance, partly offset by a negative currency impact due to the
strengthening of the Swiss franc against most leading currencies, not including
the euro, Julius Baer said.

Since the end of June 2013 the net new money rate improved
modestly from the level reached in the first half of 2013, taking the
annualised pace of net inflows in the first ten months 2013 up to the lower end
of the 4-6 per cent medium-term target range.

Net new money continued to be driven by net inflows from the
growth markets and from the local business in Germany, while the inflows from the
cross-border European business were balanced by outflows from tax regularisations
of legacy assets, it said.

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