Julius Baer splits private banking and asset arms in a bid to unlock value
SWISS bank Julius Baer is separating its private banking and asset management arms into two “independent entities”, in a bid to unlock value for shareholders.
The group said the split will create two groups with a “clear focus”.
GAM, which sells funds to London investors from Julius Baer’s St James’s Street office, and Julius Baer Asset Management Europe will be lumped along with US asset manager Artio into a new GAM Holding company.
The core private banking arm will become a new Julius Baer Group, with shareholders of the current combined entity being given a share in each new listing in return for each of their current shares.
There was speculation the rejig was being completed with an eye to selling troubled GAM yesterday – the fund of hedge funds busines that has lost half its assets during the credit crunch – leaving the company as a “pure play” private bank.
But the group insisted the hedge fund will be further integrated with the asset management arm, rather than sold off.