Vontobel Sees Sharp Decline in Assets Under Management

Zurich-based Vontobel experienced overall money outflows last year which, along with unfavorable market conditions led to a sharp decline in its assets under management. Net Profit fell sharply.

After a record level of assets under management (AuM) in 2021, Vontobel experienced a 16 percent decline in AuM last year as they dropped to 204.4 billion Swiss francs ($220.9) from 243.7 billion, according to results released Wednesday.

Unfavorable market conditions mainly contributed to the decline, but there were negative outflows of new money. Net new money was down 5.2 billion last year, declining 2.1 percent on a yearly comparison, after netting 8.1 billion in 2021.

Of the overall AuM decline, 36.9 billion francs was due to performance, with a further 3.4 billion decline from foreign exchange-related effects.

Vontobel’s AuM decline was tempered by a positive 6.2 billion franc impact from the acquisition of Swiss Financial Advisors from UBS, according to the statement.

The decline in its asset management unit was 7.4 percent as «clients stayed on sidelines rather than reinvesting or making new investments in various asset classes,» according to the statement. AuM in the unit stood at 107.2 billion francs at the end of the year.

Wealth management performed better with AuM «stable» despite the market downturn and achieved a gross margin of 71 basis points. In contrast to net money outflows in asset management, the wealth management division attracted 5.4 billion of net new money. That left AuM at 92.6 billion last the end of last year compared with 95.8 billion at the end of 2021.

Vontobel’s Group’s net profit fell 40 percent to 229.8 million Swiss francs as operating income fell 16 percent to 1.29 billion francs last year. At the same time, its return on equity was 11.2 percent, reflecting a decline of 7.6 basis points.

After the strong performance in 2021, Vontobel increased its dividend to three Swiss francs per share from 2.25 the year before. For 2022 it will recommend the same three-franc dividend.