The start of the year sees money continuing to pour in for the Swiss investment house.
Vontobel is seeing momentum from last year's record results continuing into the first quarter, with high inflows of net new money, particularly into the wealth management business, according to a media release sent the same day as the annual general meeting (AGM).
But Vontobel realizes it is not immune to market developments. «When share prices fall globally, this has an impact on our assets under management and therefore on our income,» said Vontobel CEO Zeno Staub.
Institutional investors are reluctant to invest in the current environment, which is characterized by rising interest rates and major geopolitical uncertainties, he said.
Russia
Vontobel estimates the share of Russian and Belarusian discretionary mandates, including funds, at less than 0.1 percent of total assets under management. «All relevant exposures are limited to the emerging markets strategies developed in Zurich,» the CEO said. With the exception of one fund with total assets of 30 million Swiss francs, all Vontobel funds remain open, he added.
Staub went on to say that Vontobel’s conservative business model means its client base is minimally affected by international sanctions.
«Based on our conservative lending policy, the declining value of collateral on Russian securities has no financial impact. Consequently, we currently do not expect any value adjustments to be needed in respect of our loan book and our own treasury portfolio,» he said.
End of an Era
The newly elected chairman of the board of directors, Andreas Utermann, succeeds Herbert Scheidt, who has stepped down after reaching the company's maximum age limit. Scheidt spent 20 years at Vontobel, starting as CEO and then becoming chairman in 2011.
«My primary role will be to support Vontobel as it executes its defined strategy while maintaining a long-term perspective,» Utermann said in his inaugural speech.
