Welcome to the leading Swiss private banking group Our value proposition for private clients booked in Germany

Transcription

1 Welcome to the leading Swiss private banking group Our value proposition for private clients booked in Germany

2 Welcome to the leading Swiss private banking group in Germany For over 120 years, the name Julius Baer has represented the highest standards of quality and expertise in the field of relationship management, wealth management and investment consultancy for private clients. A fine Swiss private bank in its beginnings, we have become a global Swiss private banking group present in all major financial centres around the globe. Hence, we are truly unique in combining the strengths and capabilities of a widespread group with the familiarity and exclusiveness of a private bank. Change and progress have always been key elements of Julius Baer s history, yet certain things have prevailed ever since: above all, our full dedication to viewing our clients at the centre of anything we do. The open product and service solutions platform approach helps us to offer the most suitable products for all individual requirements. Welcome to the private banking world of Julius Baer. Heiko Schlag Chief Executive Officer Bank Julius Bär Europe AG 1

3 Private banking at its purest The Julius Baer Group is the leading Swiss private banking group. Listed Swiss wealth manager UBS Credit Suisse Julius Baer BIS tier 1 capital ratio Moody s rating % A2 17.1% A2 20.9% A1 EFG 18.0% A2 Vontobel 25.5% A1 Our business focus is on wealth management for private clients (no investment banking, no retail business, no commercial lending). Our Group has a very sound financial foundation with a BIS tier 1 capital ratio of 20.9% at the end of December The present and future success of our business is based on our client-centric, holistic and open private banking business model. On 1 February 2013, we started the integration of the International Wealth Management business (IWM) acquired from Bank of America Merrill Lynch 2, thus creating a new reference in wealth management as well as a powerful product offering for all clients of the enlarged organisation. The integration of Merrill Lynch s International Wealth Management business outside the US is increasing the Group s international presence to more than 25 countries and over 50 locations The purpose of Moody s ratings is to provide investors with a simple system of gradation by which future relative creditworthiness of securities may be gauged. 2 Outside the US 3 The integration of IWM outside the US started on 1 February 2013 and is reflected in the financial figures for 2013

4 How we create value for our clients Net new money (NNM) in CHF bn and % 1 6% 6% 6% 5% 4% 4% H H H H H H We consider every client to be unique. We care for our clients, we listen and understand and then offer considered advice addressing each client s long-term wealth management needs. We offer best-in-class wealth management solutions, financial and estate planning services. We are committed to delivering service excellence to satisfy the client s complex needs, anywhere and anytime. We combine the strength and capabilities of a large group with the flair of a focused private bank big enough to matter yet small enough to care. We stand for a strong brand that inspires trust, quality, continuity, privacy, performance and innovation. We are passionate about our business and maintain a highly personal approach. We understand and interpret the financial world for our clients. 3 1 Annualised NNM in % of AuM at the start of the year Source: Julius Baer

5 Become part of our exciting journey Private banking-focused since 1890 Partnerships Acquisitions Acquisition of three private banks from UBS Acquisition of ING Bank (Switzerland) Ltd. Principal Closing of IWM transaction 1 (1 February 2013) Start of staggered integration phase in three waves Merrill Lynch Bank (Suisse) S.A. becomes part of Julius Baer Strategic 30% participation Strategic partnership in Asia Strategic partnership, integration of Bank of China (Suisse) SA Strategic partnership in Italy, 19% participation Strategic 60% participation, Japan focus 4 1 International Wealth Management business (IWM) acquired from Bank of America Merrill Lynch (outside the US)

6 Assets under management at new record high very strong capital base Key figures1 as of 31 December 2013 Julius Baer Group Ltd CHF m CHF m Change in % Operating income 2, , Adjusted operating expenses 1, , Profit before taxes Adjusted net profit Cost/income ratio % 72.8% Change in % Assets under management (CHF bn) Assets under custody (CHF bn) Number of employees (FTE) 5,390 3, Moody s Rating Bank Julius Baer & Co. Ltd. A1 A1 5 1 Adjusted results derived by excluding from the audited IFRS financial statements the integration and restructuring expenses, the amortisation of intangible assets related to previous acquisitions or divestments and in 2013 a CHF 29 million (net of taxes: CHF 22 million) provision in relation to the withholding tax treaty between Switzerland and the UK 2 The staggered integration of Merrill Lynch s International Wealth Management business outside the US started on 1 February 2013 and is reflected in the financial figures for 2013, making a direct comparison to the 2012 reporting period difficult. 3 Revised IFRS accounting standards related to the Group s pension plan that became effective on 1 January 2013 and are described in the Group s Annual Report 2013 resulted in restatement of certain expense and balance sheet items for the 2012 reporting period 4 Calculated using adjusted operating expenses, excluding valuation allowances, provisions and losses

7 Julius Baer s brand value performance since % CHF 1,748m CHF 1,558m CHF 406m No. of relationship managers No. of locations Source: Interbrand Zintzmeyer & Lux, 2012; publication of brand values in the subsequent year

8 Built on solid business grounds When profitability, transparency and soundness matter Assets under management in CHF bn As a result of our focus on private banking, our risk profile is low by sector standards as well as fundamentally profitable and cash flow-positive We achieved profits and paid dividends ever since our Group went public back in The listing of Julius Baer Group Ltd. on the SIX Swiss Exchange enables the highest degree of corporate transparency. The Julius Baer Group is regulated by the Swiss Financial Market Supervisory Authority FINMA. The organisational structure of the Julius Baer Group fulfils all the demands of modern corporate governance as well as the requirements of efficient management. Our long-standing management team has broad and profound management experience in the international financial services industry. H H H H H H Source: Julius Baer

9 International Wealth Management business: major leap in Julius Baer s growth strategy Principal Closing achieved preparation for client migration fully on track Compelling strategic rationale Adds substantial scale to existing locations and presence in key new locations Increases exposure to growth markets approaching 50% AuM post integration Further strengthens Julius Baer s unique value proposition to its sophisticated combined client base Global strategic cooperation agreement with Bank of America Merrill Lynch to benefit all clients Integration well on track Principal Closing achieved on 1 February 2013 and Merrill Lynch Bank (Suisse) S.A. (MLBS) acquired Very positive responses from Merrill Lynch employees in all regions 8

10 Expected locations after joining of forces Julius Baer booking centres Other Julius Baer locations Offices of Julius Baer partners New locations from International Wealth Management business 9 1 Switzerland: Julius Baer in Zurich (head office) plus 14 other locations, incl. Geneva 2 Germany: Bank Julius Bär Europe AG in Frankfurt (head office) plus 7 other locations 3 India: International Wealth Management business main office in Mumbai plus 4 other offices

11 Selected awards reflecting our commitment to excellence The Asset Best Boutique Private Bank in Asia 2011 Private Banker International Outstanding Private Bank Europe 2011 Private Banker International Customer Relationship Skills 2011 (3 rd consecutive year) Spear s Russia Wealth Management Award Foreign Private Bank of the Year Global Private Banking Awards Best Private Bank in Switzerland The Asset Best Boutique Private Bank in Asia 2012 Global Finance Best Global Private Bank 2012 Asian Private Banker Best Private Bank External Asset Manager s Choice Spear s European Private Bank of the Year (outside of Russia) z-capital Best Corporate Governance The Asset Best Boutique Private Bank in Asia 2013 (4 th consecutive year) Global Finance Best Global Private Bank 2013 (2 nd consecutive year) CFI Capital Finance International Best Private Bank Switzerland manager magazin Best Private Bank in Germany FT Business Group publications Best Growth Strategy 10

12 Overview of Julius Baer s products, services and solutions Offering for private client needs Client Relationship manager / Financial advisor Advise Supervision & provision of recommendations by Julius Baer Manage Full delegation to Julius Baer Trade Trading of own investment ideas Products and securities recommendations Investment Service Mandate* Investment Advisory Mandates* Multi-Asset Class Mandates* Single-Asset Class Mandates* Portfolio Funds* Execution only** Wealth & Tax Planning Wealth structuring and financial planning Tax planning Individual portfolio analysis Research Economic and strategic research Fixed income, equity and commodity research Advise on relocation, retirement, succession and philanthropy Structures, special finance transactions and fiduciary services Technical analysis Julius Baer Next Generation investment opportunities for the future Financing Lombard lending against eligible collateral Special credit structuring (via Switzerland) Customised credit solutions (via Switzerland) Services and solutions Open product and service solutions platform, e.g. fund solutions, structured products Equities execution capabilities in more than 70 markets / fixed income broker network of 150+ counterparties Mortgages for real estate in Germany (for existing clients only) Guarantees Exclusive credit cards for selected customers Foreign Exchange Spot and Foreign Exchange Forward in all major currencies / precious metals * Based on Julius Baer s investment approach ** Only available for selective clients with high/considerable knowledge & experience as well as high risk profile 11 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

13 Target service model landscape Advise Manage Trade I would like Julius Baer to conduct basic supervision on my investments and to provide me with recommendations suited to my risk profile. I do not need systematic access to Julius Baer investment content. I would like Julius Baer to conduct permanent portfolio monitoring for investment risks and to provide me with investment advice carefully selected for my needs. I would like Julius Baer to conduct permanent portfolio monitoring for investment risks and a dedicated investment advisor to provide me with proactive and personalised advice. I would like to delegate the day-to-day management of my assets to investment specialists. On request, the mandate can be customised to meet my personal needs. I would like to use Julius Baer s platform to trade my own investment ideas. Products and securities recommendations Investment Service Mandate* Investment Advisory Mandates* Discretionary Mandates* Execution only** low high low high low high low high low high Involvement Advice Monitoring Involvement Advice Monitoring Involvement Advice Monitoring Involvement Advice Monitoring Involvement Advice Monitoring * Based on Julius Baer s investment approach ** Only available for selective clients with high/considerable knowledge & experience as well as high risk profile 12 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

14 Advise: product and securities recommendations To profit from the changing market environment Julius Baer s market view Selection of products and securities Fixed income Equities Funds Structured products Investment ideas Product and securities recommendations Relationship manager / Financial advisor Client 13 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

15 Advise: Investment Advisory Mandates Distinct and customised offering Services Direct Investment Advisory Mandate Indirect Investment Advisory Mandate Investment Service Mandate direct access to our investment advisors mandate performed by an investment advisor timely execution services active advisory, taking account of your personal needs and objectives the relationship manager / financial advisor has direct access to our investment advisors regular portfolio analysis with detailed evaluations access to our innovative investment process ongoing portfolio monitoring in accordance with guidelines you stipulate in advance updates from our Research department initial and then quarterly analyses of your portfolio up-to-date information on the financial markets and their influences «Investment Ideas» and the monthly «Investment Advisory Booklet» are the flagship publications of Investment Services which provide relationship manager / financial advisors with a concrete selection of investment products to profit from the changing market environment. 14 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

16 Manage: Discretionary Mandates Investment solutions based on individual needs Income Investment objective Growth Premium Multi-Asset Class Mandates Multi-Manager Regionally Focused Income Balanced Growth Single-Asset Class Mandates Sustainability Fixed Income Equity Defensive Dynamic Asia Global Excellence Special Value NEWO* Asia Bespoke solutions * New Economic World Order: aims at benefiting from the growth potential in the key emerging markets 15 Most mandate types are available as portfolio funds as well. The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

17 Manage: Discretionary Mandates The core offering Multi-Asset Class Mandates Single-Asset Class Mandates Bespoke solutions are broadly diversified and actively managed using a wide range of assets. Using a robust investment strategy, we target solid investment returns. And to this end we employ Julius Baer s holistic investment approach and active risk management. are suitable for clients who favour specific asset classes. Depending on the mandate, this can mean investing predominantly in bonds or equities. are suitable for clients who want us to implement their exact individual specifications for asset classes, regions and sectors. 16 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer. The various products and services differ regarding expected risks and returns. Please be aware that losses are possible in any products and services offered.

18 Wealth &Tax Planning Your wealth your future Overview of asset portfolio and wealth planning strategy Customised solutions taking account of the client's tax position Considerations when changing residence Developing and preserving the client s wealth Client We apply the open product and service solutions platform approach We offer the best possible solution to meet our clients' individual needs, hence the client can choose between in-house solutions and solutions provided by carefully selected and approved external partners. Arranging for wealth to be passed on in accordance with the client's individual wishes Processing escrow transactions Setting up a charitable foundation or bequeathing assets to charity 17 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

19 Research A wide range of products supported by comprehensive analysis Economic Strategy Currencies Fixed income Global economic analysis with focus on current and future growth and inflation backdrop, bond yield developments and exchange rates Whenever possible, proprietary indicators and models are used, complemented with secondary research Top-down assessment of developed and emerging markets to support the overall investment process Specialty publications and products Extensive media work and client interaction Ranking of a global currency universe according to each currency's expected performance Heuristic approach taking into account changing global foreign exchange themes, fundamentals, flows, sentiment, momentum and positioning Supporting clients and relationship managers / financial advisors with sophisticated analysis of bond market trends, fair valuations and issuer credit risks Optimising the asset allocation for clients focused on cash flow Equities Commodities Technical analysis Thematic research Sector specialists provide bottom-up stock picking Core holdings of clients and stocks with regional bias (e.g. German bias for clients booked in Germany) Equity recommendations with relative ratings: Buy, Hold and Reduce Commodity price forecasts and investment ideas based on fundamental research; supply and demand, term structure analysis, cost curves, etc. Providing support to clients, in-house stake-holders and structured products investing in commodities Short-term investment ideas on all major asset classes Equity recommendations based on an absolute investment approach Growth, Planet, People Outside-the-box long-term investment ideas Exposing future prospective trends Fresh perspectives 18 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

20 Research Julius Baer Next Generation Growth Planet People Growth models Crises as catalysts Changing business models Water The energy transition Global agriculture Happiness Growing up Flat world Julius Baer Next Generation looks beyond the short term, exposing future prospective trends that have potentially farreaching implications on economic prosperity, our world and the progress of mankind. Julius Baer brings to the surface fresh perspectives and provides outside-the-box long-term investment ideas, driven from a progressive and critical evaluation of their potential. 19 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

21 Financing Lombard lending and mortgages Lombard lending Mortgages Advanceable collateral Products Object types Products diversified portfolios with marketable securities portfolios with hedge funds, structured products or emerging market securities portfolios with certain risk concentration overdrafts on current accounts fixed-term loans guarantees stand-by letters of credit documentary collections commercial letters of credit (external partners) residential properties (houses/apartments) others, on a case-by-case basis (in Germany only) floating rate mortgages Libor mortgages fixed rate mortgages forward fixed rate mortgages construction loans (selectively) exclusive credit cards Additional services Geographical range Additional service special credit structuring (via Switzerland) customised credit solutions (via Switzerland) Germany selectively Switzerland further regions (Monaco / Côte d Azur, selectively further parts of France, Singapore and high end Hong Kong) via Switzerland advisory service for the purchase and/or sale of real estate The products and services offered depend on the domicile of the client and the legal entity of Julius Baer. The various products and services differ regarding expected risks and returns. 20 Please be aware that losses are possible in any products and services offered.

22 Services and solutions: fund solutions Broad offering to cover your needs Best-in-class approach Services and more Sourcing Global fund universe Identification of relevant funds Analysis of data Fund manager assessment Detailed portfolio analysis execution only Monitoring and controlling Sounding board Selection Approved funds Fund facts and analyst snapshots active recommendations fund monitoring reporting / after-sales regulation and tax fund studies execution Conviction High conviction funds based on macro calls local needs long-term themes additional documents Premium Customised solutions premium customised offering sophisticated asset class advisory and structuring 21 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

23 Services and solutions: structured products Suitable products for every risk and return expectation The products and services offered depend on the domicile of the client and the legal entity of Julius Baer. The various products and services differ regarding expected risks and returns. 22 Please be aware that losses are possible in any products and services offered. customised products from a minimum size of EUR 1m direct access to own structured products capabilities high expertise throughout structures, asset classes and themes short time to market as a guiding principle listing on the SIX Swiss Exchange first-class market making constant quote availability liquidity competitive bid/ask spreads Moody s rating A1 open product and service solutions platform ensures cutting-edge product offering Derivative Toolbox: state-of-the-art product platform for flow products (starting from CHF 50,000) member of the Swiss Structured Products Association (SSPA) in addition: bespoke solutions across asset classes for dedicated client segments

24 Services and solutions: key execution and trading capabilities Foreign exchange and precious metals Securities Structured products spot and forward in all major currencies emerging markets foreign exchange and metals OTC options (vanilla and exotic) precious metals (physical and nonphysical) global cash equities exchange traded derivatives (ETD) funds (traditional and non-traditional funds) secondary market making on traditional funds fixed income managed open product access to all structures and asset classes securitised products and OTC top 5 structured products and warrants issuer in the Swiss market, with focus on equities, delta-1 and AMC, funds global bespoke solution offering for institutions and UHNWI 24h service provided out of Zurich and Singapore online margin monitoring infrastructure professional advice to financial advisors to cover private banking needs 08:00-22:00 CET execution out of Frankfurt (EU BC) 07:00-23:00 CET execution out of Zurich state-of-the-art order routing engine high degree of automation member of SIX, Eurex executing in over 70 markets algorithmic execution supported structuring, advisory and execution services out of Zurich and Singapore dedicated EAM (External Asset Manager) coverage out of Switzerland access to more than 20 selected counterparties in managed open product and service solutions platform The products and services offered depend on the domicile of the client and the legal entity of Julius Baer. The various products and services differ regarding expected risks and returns. 23 Please be aware that losses are possible in any products and services offered.

25 Additional services Reporting Client assets deserve a clear and structured representation. We offer an extensive range of reporting packages, available in English, German, French, Italian and Spanish (e.g. asset allocation, charts, currency allocation, performance, liquidity and bond analysis, position details, etc.). Baer Online Baer Online offers fast, secure access to all current data concerning the private account and securities. In addition, Baer Online serves as a direct line to the personal relationship manager / financial advisor. Research online The online platform of Julius Baer s research team allows you to easily call up the latest information and analyses and also offers you a wide selection of research publications that can either be read online or downloaded. Julius Baer Podcasts Our financial information at the pulse of the market is available as audio and video podcasts. 24 The products and services offered depend on the domicile of the client and the legal entity of Julius Baer.

26 Important legal information This publication constitutes marketing material and is not the result of independent financial research. Therefore the legal requirements regarding the independence of financial research do not apply. The information and opinions expressed in this publication were produced by Bank Julius Bär Europe AG, Frankfurt, as of the date of writing and are subject to change without notice. This publication is intended for information purposes only and does not constitute an offer or an invitation by, or on behalf of, Julius Baer to make any investments. Opinions and comments of the authors reflect their current views, but not necessarily of other Julius Baer entities or any other third party. Services and/or products mentioned in this publication may not be suitable for all recipients and may not be available in all countries. Clients of Julius Baer are kindly requested to get in touch with the local Julius Baer entity in order to be informed about the services and/or products available in such country. This publication has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Before entering into any transaction, investors should consider the suitability of the transaction to individual circumstances and objectives. Nothing in this publication constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate for individual circumstances, or otherwise constitutes a personal recommendation for any specific investor. Julius Baer recommends that investors independently assess, with a professional advisor, the specific financial risks as well as legal, regulatory, credit, tax and accounting consequences. Past performance is not a reliable indicator of future results. Performance forecasts are not a reliable indicator of future performance. The investor may not get back the amount invested. Although the information and data herein are obtained from sources believed to be reliable, no representation is made that the information is accurate or complete. Bank Julius Bär Europe AG, Frankfurt, and affiliated companies do not accept liability for any loss arising from the use of this publication. This publication may only be distributed in countries where its distribution is legally permitted. This information is not directed to any person in any jurisdiction where (by reason of that person s nationality, residence or otherwise) such publications are prohibited. Germany: Bank Julius Bär Europe AG, authorised and regulated by German Federal Financial Supervisory Authority (BaFin), disseminates this publication to its clients. United States: NEITHER THIS REPORT NOR ANY COPY THEREOF MAY BE SENT, TAKEN INTO OR DISTRIBUTED IN THE UNITED STATES OR TO ANY US PERSON. Julius Baer Group,

27 BANK JULIUS BÄR EUROPE AG Frankfurt am Main Head Office P.O. Box Frankfurt am Main Germany Visitor address: An der Welle 1 Telephone + 49 (0) Fax + 49 (0) Chairman of the Supervisory Board: Gian A. Rossi, Zurich Executive Board: Heiko Schlag (CEO), Dr. Gerhard Grebe, Alexander Jecht Register of Companies: Frankfurt am Main, HRB No Tax Payer s Reference No.: , VATIN: DE The Julius Baer Group is present in over 40 locations worldwide. From Zurich (Head Office), Duesseldorf, Frankfurt, Hamburg, Munich, Stuttgart, Dubai, Geneva, Guernsey, London, Monaco, Montevideo, Moscow, Nassau to Singapore. 03/2014 Publ. No. PU00216EN JULIUS BAER GROUP, 2014