Swiss private banking group Julius Baer plans closer cooperation with its Italian asset management unit Kairos after concluding a strategic review of the business.
Julius Baer put Kairos under strategic review and was planning to divest the Italian business after it reported outflows last year.
In a change of strategy, the private bank has now conceded that more operational alignment with Kairos will support the latter’s long-term development.
In order to meet this objective, Julius Baer plans a deeper collaboration between its own and Kairos’ businesses catering to clients in Italy.
Moreover, Kairos is said to play an integral role in strengthening Julius Baer’s in-house investment capabilities “within the Bank’s open architecture philosophy”.
The bank will unveil a detailed growth strategy for Kairos in the coming months.
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Julius Baer head region Europe and Kairos chairman Yves Robert-Charrue said: “Our review has clearly shown that Julius Baer is the best owner for Kairos, which offers significant potential for us to build out our position in the attractive Italian wealth management market.
“After a difficult 2018, the performance of Kairos funds in the first half of 2019 has markedly improved.”
Julius Baer initially invested in Kairos in 2013 by acquiring a 19.9% stake in the asset management business.
The bank became the sole owner of Kairos last January.
Kairos’ assets are said to have increased two-fold to more than €9bn since the beginning of its alliance with Julius Baer in June 2013 to 30 June 2019.