Awards for Distinction 2011 – External Asset Managers’ Choice


APB-AFD-BestPrivateBankEAMC

Julius Baer

From left: Jan Dirkmann
, Pamela Phua
, Christopher Burgess

From left: Jan Dirkmann
, Pamela Phua
, Christopher Burgess

In its naissance, an extension of the family office-model in Europe, the external asset manager business is now a reliable, repetitive source of revenue for private banks in mature markets such as Switzerland and the United Kingdom. In Asia, a few early-adopter private banks have used the model or a related hybrid for much of the last decade. Over the last year this industry subset has grown significantly in numbers despite a difficult market environment as a result of new entrants from both the asset management as well as the banking side of the business.

Private banks with established external asset management-derived business have increased focus on this area, with a greater number of banks setting up dedicated teams to understand and service the specific needs of these clients. The tougher economic environment has brought home the significant advantages of this business model for private banks: captive and growing AUMs, greater amortisation of fixed costs and greater visibility for revenue projections. Competition among private banks in this space has grown apace.

External asset managers seek to distinguish themselves from general financial consultants by the manner in which they look after client assets – free from third-party influence, with a very high degree of personalisation and with accreditation from the regulators. They also endeavour to set the bar high for professionalism and service quality and for this they depend greatly on their partner banks.

Julius Baer has a unique understanding of the requirements of its external asset managers who count on the private bank to help them achieve swift, economical trade execution and relevant research and is thus the deserved winner of this year’s award. Indeed, it exceeds the standard industry requirements and acts as a genuine partner with its external asset manager clients. With long-standing focus on its external asset manager business and a dedicated team of professionals, Julius Baer received glowing tributes from external asset managers who referred to the bank’s “flexible approach” towards and “long experience” in dealing with their needs as well as the exceptional quality of service they received.