Vontobel will look to sharpen its focus in Asia specifically on structured products following a reorganization, finews.asia has exclusively learned, which will lead to the relocation of its Asia wealth management CEO back to Switzerland. 

Vontobel will reorganize its business in Asia with the merger of advisory investment solutions (structured solutions & treasury AIS) and wealth management in Asia to become the new structured solutions financial institutions unit, according to an internal note seen by finews.asia. The changes were communicated to the Hong Kong team earlier this week while structured solutions staff were notified at a town hall Wednesday.

As part of the plans, Vontobel will discontinue the distribution of leveraged products to private clients in Hong Kong and phase out custody and execution services for external asset managers out of Singapore. The Zurich-based bank will remain available as a structured solutions partner to institutional clients and financial intermediaries in Hong Kong.

Vontobel employs at present around 40 people in Hong Kong, a spokesperson said to finews.asia, adding that «Vontobel has decided not to issue any further products for end clients in Hong Kong and to list in Hong Kong [b]ut it stands as a liquidity provider by all obligations».

Banking Veteran

Georg von Wattenwyl has been named head of structured solutions financial institutions, in addition to his current role as Asia wealth management CEO and Singapore CEO. After four years in Asia, von Wattenwyl will relocate back to Switzerland towards the end of 2023 where he will lead teams in Switzerland, Europe and Asia.

Von Wattenwyl joined Vontobel more than 24 years ago. The banking veteran is also the chairman of the board of the Swiss Chamber of Commerce and Industry in Singapore since 2019. From 2014 to 2019 he also chaired the Swiss Structured Products Association (SSPA).

Center of Excellence

On its asset management business, Vontobel will continue to serve clients out of Hong Kong which is also a hub for its «center of excellence» (CoE) investments. The business involves strategies invested in selected Chinese companies. 

«We would like to thank our colleagues who, with great dedication, have successfully gained market share in the very competitive derivatives business with private clients in Hong Kong over the past years, in at times turbulent markets,» said the head of structured solutions & treasury (STT) Markus Pfister. 

«Hong Kong is a demanding market, and our team has done an excellent job. However, a successful strategy also involves setting priorities. We have done this by deciding to focus our growth in Asia even more strongly on business with institutional clients and financial intermediaries.»

Wealth Exit in Hong Kong

Meanwhile, the Swiss lender announced its decision to close its Hong Kong office and transfer wealth management client accounts to Liechtenstein-based LGT a few weeks ago. Chief executive Zeno Staub said in a press conference that Vontobel had seen «several hundred million francs» in outflows from clients in the region in the first nine months of 2022.

finews.asia first reported the change of course in the region in July this year with around six employees expected to be affected by the new plans.