Yves Robert-Charrue, Julius Baer's European boss, tells finews.asia why integrating an independent asset management subsidiary. The move could cost jobs, and the Swiss bank plans to continue its acquisition strategy.
Yves Robert-Charrue, why this sudden integration of WMPartners into Julius Baer?
We're convinced there is strong demand from clients for a multi-custody solution across several banks. WMPartners does exactly that, booking its client deposits at roughly 30 banks.
«We want to use WMPartners' know-how for Julius Baer»
It has all the interfaces and tools to participate in ongoing consolidation among independent asset managers. We'd like to use this know-how and capability inside Julius Baer more widely.
So you're still going to be an active consolidator of independent asset managers?
Yes, we still want to be part of ongoing consolidation. It's clear to us that we don't need a separate legal entity to be active in multi-custody.
Will there be job cuts as a result of integrating WMPartners?
There may be. We will try and offer jobs within Julius Baer Group to all WMPartners employees, and that will be the case in many instances.
«May be back-office job cuts»
The «front» team will stay together, but I can't rule out back-office cuts.
What do you hope from the integration?
We'll simplify our organization with one legal entity less. Thanks to the integration, we'll be able to pool efforts on marketing, product expertise, financial planning and portfolio management.
«WMPartners' management is committed to staying»
We'll also see advantages on the client side, where we'll be able to provide a more extensive offering through an open architecture.
What about WMPartners' management under CEO Daniel Aegerter?
Daniel Aegerter and his top management will accompany the integration, which we expect to be concluded in the fourth quarter. We'll have some things on the systems side which will spill over into 2018. We have a good team. The idea is to use their capability and expertise in the bank. That's why it's important that the team is fully committed.
Any financial incentives for WMPartners bankers to remain on board?
No comment.
What will change for WMPartners' relationship managers?
They already cooperate with specialists in the bank, so there won't be a major change for many WMPartners relationship managers. Julius Baer is a very entrepreneurial bank. We've made several acquisitions in recent years and done a good job integrating our new colleagues.
«WMPartners integration is very doable»
The WMPartners and Julius Baer organizations are already relatively closely aligned today. I think the complete integration is very doable.
This is a reversal of Julius Baer's strategy. Is the independent asset manager model doomed?
I wouldn't view it that absolutely. Asset managers which can find a market niche or carve out a specific investment strategy for themselves have a promising future: their distinctiveness will add value.
«Mid-sized independent asset managers will struggle»
I see fewer options for independent asset managers who want to do everything and don't have critical mass. Small and mid-sized firms will need to take a look at their future set-up. For the smallest asset managers, it looks as though they may be able to benefit from a regulatory grandfathering.
Yves Robert-Charrue runs Julius Baer's business in Europe as well as its independent asset manager and global custody division. A close associate of CEO Boris Collardi, he has been with the Swiss private bank for more than eight years in various top management roles. Like Collardi, Robert-Charrue began his career at Credit Suisse. A Swiss native, he studied at the London School of Economics and majored in economics at the University of St. Gallen. Robert-Charrue once took two years off from Credit Suisse to pursue music.
