Julius Baer Group: Interim Management Statement for the period to 11 November 2008

Tuesday, 11. November 2008 07:00
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issued in accordance with the EU Transparency Directive

Significant net new money in Private Banking - Outflows in Asset
Management - Negative market impact on AuM - All businesses
contributing to strong profits - Sound balance sheet with solid
capital base

Zurich, 11 November 2008 --- Year-to-date, the Julius Baer Group
continued to show forceful business expansion in Private Banking and
ongoing product development with strong investment performance
relative to peers within Asset Management. Group assets under
management were impacted by the large market declines across most
asset classes, client withdrawals within Asset Management as well as
the strengthening of the Swiss Franc against European currencies,
partly offset by significant net new money in Private Banking.

Net inflows in Private Banking were significantly above last year's
level, supported by Julius Baer's strengthened franchise and with all
Private Banking regions contributing to the increase. The target of
adding a net 50 to 60 private bankers by year end has already been
reached. In the second half of 2008, offices have been or will be
opened in Jakarta, Cairo, St. Gallen and St. Moritz. The continued
increase in new assets and clients creates a solid base for future
revenue growth. Given the market environment, Bank Julius Baer is
re-evaluating all business initiatives to ensure that resources are
deployed to the most attractive opportunities. Therefore the
Investment Products division will be even further aligned with
Private Banking to maximise efficiency and service quality while the
expansion of the fund range will be de-emphasised. This will allow
Bank Julius Baer to greater focus its resources on the proven, still
attractive growth opportunities to expand its private banking
operations. Given these changes, Beat Wittmann, CEO of the Investment
Products division, after advising on the transition, will be leaving
the Group to pursue other opportunities.

The asset management industry has faced a challenging environment
through October, with private and retail clients redeeming assets
from hedge and equity funds, though the sophisticated institutional
segment increased allocations during the period given the higher
expected future returns created by the market dislocation. GAM, with
largely private client assets, continued to experience net outflows,
with the rate accelerating in October as market stress peaked. GAM's
core multi-strategy funds of hedge funds are now meaningfully
outperforming the relevant indices year-to-date; this, plus
differentially strong long term track records, should create
important growth opportunities once markets stabilise and as the
industry consolidates to a smaller set of high quality providers. At
Artio Global, though second half net flows turned negative, total net
flows remained positive year-to-date supported by the strength of the
large institutional client base. Artio Global's international equity
funds continue their outstanding long-term track record and are now
again performing ahead of their relevant indices year-to-date. Julius
Baer intends to IPO Artio Global when market conditions allow.

The Group's net operating income through October was down by
approximately ten percent compared to the same period of last year.
Targeted cost-cutting in all business areas, overall lower
performance compensation accruals as well as currency impacts
resulted in slightly reduced operating expenses despite ongoing
investment in business expansion. Given the decreased asset base,
Julius Baer will continue to focus on stringent cost management,
while maintaining key growth initiatives.

The Julius Baer Group continues to enjoy a sound balance sheet with
low leverage, and a solid capital base. The Group has repurchased CHF
300 million of own shares since the inception of the buy-back
programme in April 2008. The BIS Tier 1 ratio is at the targeted
level of 12% under Basel II, and Bank Julius Baer & Co. Ltd.
continues to be rated Aa3 by Moody's.


Media Relations: Tel. +41 (0)58 888 5777
Investor Relations: Tel. +41 (0)58 888 5256

The 2008 annual results of the Julius Baer Group will be released on
6 February 2009 and the 2009 half-year results on 24 July 2009.

About Julius Baer
Julius Baer is the leading dedicated wealth manager in Switzerland.
The Group, which has roots dating to the nineteenth century,
concentrates exclusively on private banking and asset management for
private and institutional clients. With more than 4,200 employees
worldwide, the Group managed assets in excess of CHF 360 billion at
the end of June 2008. The Julius Baer Group's global presence
comprises more than 30 locations in Europe, North America, Latin
America and Asia, including Zurich (head office), Buenos Aires,
Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan, Moscow,
New York, Singapore and Tokyo. Bank Julius Baer and GAM, a global
asset manager focused on active and alternative wealth management,
are the key companies of the Group. The registered shares of Julius
Baer Holding Ltd. are listed on the SIX Swiss Exchange and form part
of the Swiss Market Index (SMI) which comprises the 20 largest and
most liquid stocks.

For more information: www.juliusbaer.com

--- End of Message ---

Julius Baer Holding
Bahnhofstrasse 36, P.O. Box Zurich

ISIN: CH0029758650; Index: SLCI, SMI, SMIEXP, SPI;
Listed: Main
Market in SWX Swiss Exchange;

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