Client response to market uncertainty in Asia during the early part of 2022 hits Julius Baer AuM, resulting in more than $1 billion in net outflows.
Julius Baer recorded 1.1 billion francs ($1.14 billion) in net outflows in the first six months of 2022, according to its latest first-half results, down sharply compared to the 10 billion francs of net inflows seen in the same period a year earlier.
According to the bank, this was the result of a 2.7 billion franc of net outflow in the first four months of 2022, which was subsequently followed by a 1.5 billion franc inflow starting at the end of April. Western European domiciled clients contributed to inflows meaningfully throughout the first half, while inflows from clients domiciled in the Middle East turned positive after April.
De-Risking in Asia
In contrast, Julius Baer’s asset flows were hit by a number of clients mainly domiciled in Asia early in the first half – a region the bank calls its «second home market». They started reacting to the uncertain market environment by de-risking investment portfolios and reduced leverage.
«The impact on net new money from this deleveraging peaked in March 2022, after which it diminished significantly,» the bank indicated, saying it expects net new money developments to «normalize further» in the second half of the year.
Overall, the bank reported an 11 percent drop in assets under management to 428 billion francs, attributable to the significant correction in global equity and bond markets.
