In line with its original integration plans, Julius Baer has begun the transfer of Merrill Lynch’s International Wealth Management (IWM) business in Hong Kong and Singapore.
The step represents a "major milestone" in the two-year integration process and is expected to double the Bank’s assets under management in Asia, which is Julius Baer’s second home market.
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IWM’s financial advisers, their client relationships and related assets under management of the respective businesses will be transferred to the Julius Baer platforms in stages and in line with applicable regulations in the two jurisdictions. The process in Asia is expected to be completed in the first quarter of 2014.
Boris F.J. Collardi, CEO of Julius Baer Group, said the integration of the Hong Kong and Singapore businesses is a "crucial part" of the transaction, representing more than a third of IWM’s entire business in scope.
"After the integration about a quarter of our total assets will be managed in Asia and it will make us one of the largest international wealth management players in our second home market. The transfer will double the number of our local employees. With this considerable reinforcement we have created excellent preconditions for further dynamic growth in this very important market in the years to come."
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By GlobalDataRight on track
In August 2012, Julius Baer won the bid to buy Merrill Lynch’s IWM business, with client assets worth US$84 billion, from Bank of America (BofA). After the acquisition was announced, Julius Baer raised US$492 million to fund the deal on 18 October 2012, before enlisting former Merrill Lynch senior executives to support the integration of the IWM in January 2013.
The first step of the transfer of BofA’s business started on 1 February 2013, with the integration of the Geneva-based Merrill Lynch Bank (Suisse), and its branches in Zurich and Dubai.
In April 2013, Julius Baer transferred more legal entities in four locations across Latin America, keeping the integration process on schedule.
Upcoming plans
The next businesses to be transferred are in the UK, Spain and Israel, which are expected to occur over the upcoming months. The preparations for these transfers are well under way, according to Julius Baer.
Post the unit transfers in Asia, Bank Julius Baer will eventually move to its newly combined business in Hong Kong, making it the new prime location. In Singapore, Bank Julius Baer will continue to operate out of its existing premises, which will remain Julius Baer’s IT and operations hub for Asia.
Thomas R. Meier, head Asia of Bank Julius Baer, said, "The teams on both sides have already worked together very closely over the last few months to ensure that the transition will continue to proceed as planned. By combining the unique strengths and histories of both banks we will be able to provide an even better and more comprehensive service to clients in this region."
