Julius Baer Group’s assets under management (AuM) reached CHF187bn ($198bn) in the ten months to the end of October 2012, an increase of 10% from the end of 2011.
The rise was accompanied by a growth of 9% in total client assets, totalling CHF274bn to the end of October 2012.
The growth resulted from continued solid net inflows close to the top end of the Julius Baer’s medium-term target range, as well as a positive market performance impact supported by sustained gains in the global equity and bond markets.
The rise comes after the Swiss private bank saw client transaction and trading activities contract after the end of June 2012, but figures show activity has recovered in September and October 2012, albeit not fully to the levels seen on average in the first half of 2012.
Higher cost-income ratio as activity levels flatline
With activity levels not fully recovering, the gross margin in the first ten months of 2012 was slightly lower than the 98 basis points reported for the first half of 2012, resulting in a cost-income ratio slightly higher than the cost-income ratio reported for the same period.
Merrill Lynch’s IWM rights offer nets CHF492m
Julius Baer Group’s closing of Merrill Lynch’s International Wealth Management business outside the US and Japan (IWM) acquisition is expected to occur at the end of January 2013.
The group completed the financing for the acquisition of by issuing 20,316,285 new registered shares by way of a rights offering at an issue price of CHF 24.20 per share, resulting in gross proceeds of CHF492m.