Julius Baer: to miss medium-term target this year

(CercleFinance.com) - Swiss private bank Julius Baer said Tuesday it was "unlikely" to achieve its medium-term target this year, due to outflows at its Italian asset and wealth management unit Kairos and temporary headwinds.


The wealth manager said the annualised net new money growth rate for the first ten months of 2019 was slightly less than 3%, compared to 4.5% in full-year 2018 and 3.2% in the first half of 2019.

For the record, the group has a medium-term target range of 4%-6%.

In the ten months to the end of October, assets under management grew by 10% to 422 billion Swiss francs.

While the group cited "benefits of cost-reduction program starting to materialise," it also pointed out "temporary headwinds" and "disappointing outflows from Kairos funds."

Julius Baer warned that its 2019 full-year results will be impacted as the goodwill on its investment in Kairos will be partially impaired.

Investors seemed to turn a blind eye to these comments, with the share up 1.2% in Zurich this morning.

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