Julius Baer Group
|Traded as||SIX: BAER|
|Key people||Daniel F. Sauter
Boris F.J. Collardi
(CEO, Bank Julius Baer),
|Products||Private banking, wealth management|
|Revenue||CHF 1.752 billion (2011)|
|AUM||CHF 170 billion (end 2011)|
|Total assets||CHF 52.928 billion (end 2011)|
|Total equity||CHF 4.310 billion (end 2011)|
|Employees||3,643 (FTE, end 2011)|
Julius Bär Group Ltd. (or Julius Baer Group, SIX: BAER) is the leading Swiss private banking group, focusing exclusively on the demands of sophisticated private clients, family offices and external asset managers from around the world. It has the largest international presence of all Swiss private banks with over 40 locations in more than 20 countries, including a comprehensive pan-Swiss network. Switzerland and Asia are the group’s two home markets, with the head office being located in Zurich.
Julius Bär Group Ltd. is a Swiss private banking group which is the parent company of Bank Julius Baer, a traditional private bank based in Zurich, Switzerland. The firm dates itself back to 1890, when an exchange office was founded by Ludwig Hirschhorn and Theodor Grob. Joseph Michael Uhl and Julius Bär joined in 1896, when Theodor Grob left. In 1901, Julius Bär acquired the bank. The group manages substantial assets for private clients from all over the world. The firm's services consist mainly of wealth management and investment consultancy, provides products via its open architecture platform as well as securities and foreign exchange trading.
The shares of the Julius Baer Group are listed on the SIX Swiss Exchange and form part of the Swiss Market Index (SMI) of the 20 largest and most liquid Swiss stocks. With a BIS tier 1 ratio of 24.0 percent (under Basel 2.5) at the end of September 2012 the Group has a very sound financial foundation, well exceeding the minimum requirements. Bank Julius Baer & Co. Ltd. enjoys an A1 rating from Moody's. At the end of October 2012, the Group's total client assets amounted to CHF 274 billion, with assets under management accounting for CHF 187 billion. Julius Baer employs a staff of over 3,600 worldwide.
The share capital of the Company amounted to CHF 4 132 615.12 as at 31 December 2011. It is fully paid up and divided into 206 630 756 registered shares (shares) with a par value of CHF 0.02 each. The shares (security no. 10 248 496; ISIN CH 010 2484968) are listed on the SIX Swiss Exchange and are a component of the Swiss Market Index (SMI) and the Swiss Leader Index (SLI). Total client assets amounted to CHF 269 billion at the end of June 2012, an increase of 4% since the end of 2011. Assets under management went up by 5%, or CHF 8.5 billion, to CHF 179 billion compared with CHF 170 billion at the end of 2011. The increase in AuM to a new record high level was the result of net new money of CHF 5.5 billion, a positive market performance impact of CHF 2.5 billion and a positive currency impact of CHF 0.5 billion. The net new money inflows, at an annualised rate of 6.4%, were helped by strong contributions again from the growth markets and from the local private banking business in Germany as well as by modestly positive contributions from the crossborder European and local Swiss businesses. Average AuM (calculated on the basis of monthly AuM levels) amounted to CHF 177 billion, an increase of 3% compared to the first half of 2011. Assets under custody grew to CHF 90 billion, after CHF 88 billion at the end of 2011, an increase of 3%.
The bank offers its private clients consulting services and wealth management - integrating financial, tax and legal related discipline
The asset management division provides investment products and advice across all major asset classes to a diverse group of institutions worldwide. Traditional and alternative strategies are managed on both an active and passive basis.
Julius Baer ranked 16th in term of Asset under Management in 2012.
|1.||Bank of America||USA||$1,671.00|
|6.||Royal Bank of Canada||Canada||$573.32|
|8 .||Deutsche Bank||Germany||$348.60|
|9 .||BNP Paribas||France||$316.20|
|12 .||Goldman Sachs||USA||$227.00|
|14 .||ABN AMRO||Netherlands||$189.98|
|16 .||Julius Baer||Switzerland||$178.79|
|17 .||Northern Trust||USA||$173.70|
|18 .||Bank of New York Mellon||USA||$168.00|
|20 .||Lombard Odier & Cie||Switzerland||$151.30|
Acquisitions and growth strategy
In September 2005, Julius Bär acquired the independent private banks Ferrier Lullin, Ehinger & Armand von Ernst, Banco di Lugano, and the asset management house Global Asset Management (GAM) from the Swiss banking giant UBS AG, to become one of the largest independent wealth management firms in Switzerland. UBS acquired almost 21% of Baer's shares as part of the deal, but sold off its stake in May 2007 to fund a share buyback. GAM was demerged as a separate company in October 2009. The companies of the group are consolidated within Julius Bär Gruppe AG, whose shares are listed on the SIX Swiss Exchange.
In November 2012, Julius Baer and Milan-based Kairos Investment Management SpA (‘Kairos’) announced that they have reached an agreement for a cooperation to jointly create a leading onshore wealth management player in Italy. Julius Baer’s Italian SIM will be integrated into Kairos and, simultaneously, Julius Baer will acquire 19.9% of Kairos. The transaction is subject to regulatory approval and is expected to close in the first half of 2013. Secondly, subject to regulatory approval, the parties have also agreed to set up a new private bank in Italy by separately applying for a banking licence after the closing of this transaction. All Italian wealth management activities of the two groups will be run under the name Kairos Julius Baer. The transaction, the terms of which have not been disclosed, will significantly strengthen Julius Baer’s long-term position in Italy.
Julius Baer agreed to acquire Merrill Lynch’s International Wealth Management business (IWM) based outside the US with USD 84 (CHF 81) billion of assets under management (AuM) as of 30 June 2012 and over 2,000 employees, including more than 500 financial advisers. The transaction is a combination of legal entity acquisitions and business transfers, that by the end of the expected two-year integration period, is currently estimated to result in additional AuM of between CHF 57 billion and CHF 72 billion, of which approximately two thirds from growth markets. Assuming CHF 72 billion AuM transferred, Julius Baer’s existing AuM as of 30 June 2012 would increase by approx. 40% to CHF 251 billion and its total client assets to CHF 341 billion, both on a pro forma basis. This acquisition brings Julius Baer a major step forward in its growth strategy and will considerably strengthen its leading position in global private banking by adding substantial scale and additional offices primarily in growth markets, but also in Europe. As part of the transaction, Julius Baer and Bank of America Merrill Lynch (BofAML) have agreed to enter into a cooperation agreement whereby BofAML will provide certain products and services to Julius Baer, including global equity research. In addition there will be cross-referral of clients between both organisations. The acquisition is expected to be earnings accretive from the third full-year following principal closing, i.e. the first full steady-state year following integration. Irrespective of the AuM transferred between CHF 57 billion and CHF 72 billion, the EPS accretion (1) target in 2015 is approx. 15%. The agreed transaction price is 1.2% of AuM transferred (payable as and when AuM transfer to Julius Baer). Therefore, at CHF 72 billion AuM transferred, Julius Baer would pay approx. CHF 860 million. At that level of AuM transferred, the amount of regulatory capital required to support the incremental risk-weighted assets is expected to amount to approx. CHF 300 million, and the total restructuring, integration and retention costs in connection with the necessary transfer of the business to the Julius Baer platform are expected to amount to up to approx. CHF 400 (after tax CHF 312) million. Separately, Bank of America (BofA) will assume up to an additional CHF 121 (2) (USD 125) million of defined pre-completion restructuring and integration costs.
Businesses and other subsidiaries
GAM Holding AG
Global Asset Management (GAM) is an independent asset management business borne out of the separation of Julius Baer in September 2009 and is listed on the SIX Swiss Exchange, with a global presence, employing over 1,000 staff in 11 countries. GAM Holding AG comprises the distinct but complementary businesses GAM and Swiss & Global Asset Management. GAM Holding AG offers a diversified range of investment products and services to institutions, intermediaries, private clients and charities.
The Julius Baer Foundation: sponsored projects
The main focus of the Julius Baer Foundation is on youth. Projects that directly benefit the younger generation are sponsored in various ways.
Controversies and lawsuits
Alex Widmer, the chief executive of Bank Julius Baer, died suddenly on December 4, 2008. News reports cited sources indicating the death was a suicide. Hans de Gier, the former chief of Julius Baer Group, assumed Widmer's responsibilities for the interim.
In May 2009, Boris F. J. Collardi assumed the role as CEO for the Julius Baer Group Ltd. and Bank Julius Baer & Co. Ltd.
On January 16, 2011, former Julius Baer employee Rudolf Elmer announced that he would be handing over to Wikileaks bank account details of individuals and corporations holding offshore accounts that may indicate massive tax evasion.
- "Annual Report 2011" (PDF). Julius Bär Group. Retrieved 13 August 2012.
- "Business Review First Half 2012 Julius Baer Group" (PDF). Juliusbaer.com.
- "Scorpio Partnership: The Global Private Banking Benchmark 2012 Top 20" (PDF). Retrieved 2013-07-17.
- Merrell, Caroline (6 September 2005). "Julius Baer snaps up UBS private banks for £2.5bn". The Times (London). Retrieved 2009-02-22.
- "Today In Business: UBS Sells Julius Baer Stake". The New York Times. 26 May 2007. Retrieved 2009-02-22.
- de Sa'Pinto, Martin (1 October 2009). "Julius Baer splits operations, unlocks value". Reuters. Retrieved 2010-03-26.
- "Julius Baer strengthens its long-term position in Italy and forms strategic partnership with Kairos – new private bank to be set up jointly".
- "Julius Baer to acquire Merrill Lynch’s International Wealth Management business outside the United States from Bank of America, with strong focus on growth markets".
- Reid, Katie (December 5, 2008). "Bank Julius Baer CEO dies unexpectedly". Reuters. Retrieved 2008-12-06.
- Ed Vulliamy (January 16, 2011). "Swiss whistleblower Rudolf Elmer plans to hand over offshore banking secrets of the rich and famous to WikiLeaks". Guardian. Retrieved January 17, 2011.