What's New In Investments, Funds? – Leonteq, Raiffeisen

Editorial Staff

3 February 2022

Leonteq
Swiss structured products business and banking group Raiffeisen Switzerland Cooperative are extending a business pact that will run to 2030, adding four years to its previous due date.

The firms have also ended an existing credit facility to take into account developments within the two companies to date, they said in a statement yesterday.

The cooperation agreement between the organisations over structured products dates back to 2013 and was already extended by ten years in 2016. Today, Raiffeisen is one of Leonteq's largest white-labelling partners in terms of the volume of products outstanding.

As part of the changes, Raiffeisen is expanding its pension and investment activities. It plans to begin issuing, hedging and distributing some of its structured products itself via a new Raiffeisen platform in the second half of 2022. Leonteq will ensure that the new Raiffeisen platform is connected to Leonteq's existing service and technology platform. The extension of their cooperation until March 2030 is subject to the successful implementation of the technological connection by the first quarter of 2023, the statement said.

Following the changes, Leonteq expects its annual net fee income to decrease by around 1 per cent. At the same time, Leonteq will be able to increase the proportion of its balance sheet-light business, in line with its strategic ambition, it said.