Julius Baer separated its entities for better serving their clients

by Yixiang Zeng

Julius Baer decided to separate its Private Banking and Asset Management businesses into two fully independent entities, both individually listed on the SIX Swiss Exchange.

The move will increase the two companies' strategic flexibility and enhance their market visibility. The transaction is expected to be completed during the third quarter 2009, subject to shareholder and regulatory approvals.

Julius Baer Group Ltd, as a leading pure-play private banking group, will stand to benefit from private clients' increasing level of demand for its services. This group will maintain the expansion of its international network and complete the shift of its services and product model towards an 'open architecture' philosophy.

GAM Holding Ltd, will be offering a broad, well diversified range of equity and fixed income investment funds, discretionary portfolios management services and alternative investments. As a stand-alone entity, the business will be able to accelerate the development of its international institutional and US distribution franchise.

The planned separation will conclude the gradual operational independence. It has been afforded to the two business segments since the implementation of the pure financial holding company principle in 2007.

Raymond J. Baer, Chairman of Julius Baer Holding Ltd, commented: “We are very pleased with our new strategic direction. In light of the challenges that many financial services business models are confronted with currently, we are convinced that both entities will benefit from their sharpened focus and the absence of competing interests, thus acting pro-actively in the best interest of all of our stakeholders.”