Swiss asset manager Vontobel has recorded a strong performance in 2020, with CHF14.8bn of fresh money flowing into its coffers and growth across all its businesses.
Highlights
The growth in net new money of 7.4% surpassed the target range of 4–6%.
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Advised client assets were CHF248.2bn at the end of December 2020, up 10% to from CHF226.1bn a year ago.
Pre-tax profit increased 5% to CHF321m from CHF306.7m. The figure increased 5% even when adjusted for one-off impacts of CHF5.5m.
Post taxes, the figure dropped to CHF259.4m in 2020 from CHF265.1m in 2019, which included tax relief in some countries.
Operating income remained almost flat at CHF1.26bn. The firm also improved its cost/income ratio from 75.6% to 74.1% through cost management, though it failed to meet its self-imposed target of below 72%.
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By GlobalDataIts CET1 capital ratio and Tier 1 capital ratio were 13.8% and 19.8%, respectively, both of which surpassed regulatory requirements.
Growth drivers
Asset Management
Asset management continued its growth trajectory, accounting for CHF9.5bn of net new money.
The business with institutional clients in the Asset Management and Platforms & Services units recording a positive performance.
Asset management solutions was the strongest growth driver.
Assets under management grew 11% year-on-year to CHF134.6bn, with a notable rise in demand for TwentyFour Asset Management’s fixed income solutions and for quant boutique Vescore’s products.
The Sustainable Equities boutique also served as a key growth driver.
Vontobel aims to continue its growth trajectory, focusing on Asia and North America along with the Global Banks client segment.
Operating income rose to CHF152.3m in 2020 from CHF150.9m in the prior year.
Wealth Management
Wealth management clients accounted for CHF3.8bn of net new money to Vontobel, representing growth of 6.3% versus 0.1% a year earlier.
Vontobel Wealth Management offered a gross margin of 73 basis points. Operating income was almost unchanged at CHF423.6m.
The business with private clients posted growth, with the firm growing its market share in derivative products in Switzerland, Germany and Italy.
Operating income in Digital Investing was CHF183.5m in 2020, up 14% from CHF160.9m in the previous year.
Board changes
Meanwhile, Frank Schnewlin has decided to step down from the board of directors of Vontobel Holding and Bank Vontobel at the general meeting of shareholders scheduled in April.
Schnewlin has been the firm’s vice-chairman since 2012.
The names of Michael Halbherr and former Allianz Global Investors CEO Andreas Utermann will be proposed for the board of directors of Vontobel Holding and Bank Vontobel at the general meeting.
