The Board of Directors of Julius Baer Holding Ltd. has decided to separate Julius Baers Private Banking and Asset Management businesses into two fully independent entities, both individually listed on the SIX Swiss Exchange.
Julius Baer Group Ltd. will focus on private banking services while GAM Holding Ltd. will concentrate on active asset management. This move will substantially increase the two companies strategic flexibility and enhance their market visibility. The transaction is expected to be completed during the third quarter 2009, subject to shareholder and regulatory approvals.
Julius Baer will be separated into two distinct, independent entities, both listed on the SIX Swiss Exchange. Julius Baer Group Ltd. will be a pure-play private banking group, with a focus on servicing and advising private clients. GAM Holding Ltd. will be an independent active asset manager, composed of GAM, Artio Global Investors and Julius Baer Asset Management Europe.
The transaction is expected to enhance both businesses ability to deliver their full strategic potential by allowing each entity to focus on the implementation of an increasingly distinct business and expansion strategy. In addition, it will provide improved transparency and increased market visibility for both private banking and asset management. The transaction is not expected to result in any redundancies.
As a pure-play private banking group, Julius Baer Group Ltd. will stand to benefit from private clients increasing level of demand for the services of an independent, strongly capitalised and fully dedicated private banking franchise. This Group will maintain the expansion of its international network and complete the shift of its services and product model towards a fully fledged open architecture philosophy, allowing for a truly unrestricted choice of the services and products available for the benefit of its clients.
GAM Holding Ltd. will be an active asset manager, offering a broad, well diversified range of equity and fixed income investment funds, discretionary portfolio management services and alternative investments. As a stand-alone entity, the business will be able to accelerate the development of its international institutional and US distribution franchise. The intention to proceed with the IPO of Artio Global in 2009 is confirmed, subject to market conditions.
The planned separation of the current Julius Baer Group into two independently listed corporate groups will conclude the gradual operational independence which has been afforded to the two business segments of private banking and asset management since the implementation of the pure financial holding company principle in 2007. Given its well established and strong relationship, GAM will remain the preferred product provider for the private clients of Julius Baer Group Ltd. particularly for funds of hedge funds.
We are very pleased with our new strategic direction. In light of the challenges that many financial services business models are confronted with currently, we are convinced that both entities will benefit from their sharpened focus and the absence of competing interests, thus acting pro-actively in the best interest of all of our stakeholders, says Raymond J. Baer, chairman of Julius Baer Holding Ltd.
The transaction will be subject to shareholder and regulatory approvals. An Extraordinary Shareholders Meeting (EGM) is targeted for 30 June 2009.
L.D.