Annual Reports 2011 V ontob el Group - Vontobel Holding AG

Asset Management
38 Vontobel Group, Annual Reports 2011
From an investment perspective, 2011 was characterized by a high level of uncertainty
due to the European debt crisis, volatile markets and low interest rates.
Despite these adverse conditions, Vontobel Asset Management's products achieved
a pleasing performance. The multi-boutique approach proved successful. Products
from the Contemporary Value line in particular generated above-average results.
Morningstar, a leading provider of independent investment analyses, awarded the
two Vontobel funds Global Value and Emerging Markets Equity top rankings in view
of their excellent outperformance relative to the benchmark over 1, 3 and 5 years.
Above-average returns were also generated in Fixed Income. Vontobel's considerable
expertise in this area was recognized by the European rating agency Feri Euro-
Rating Services AG, which named Vontobel the “Best Asset Manager for Bond Funds
in Switzerland” at the end of November 2011.
Vontobel Asset Management was able to benefit from its high level of investment
expertise and the realignment of its sales and relationship management teams
during the year under review. The business unit acquired net new money of CHF 6.3
bn, contributing 15.4% of growth in assets under management. This demonstrates
the stable growth path being pursued by Vontobel Asset Management. Strong
inflows were mainly generated from institutional investors, which tend to invest
strategically rather than cyclically. In the US alone, Vontobel Asset Management
booked CHF 2.7 bn of new mandates. However, a considerable volume of client
assets was also acquired in the Middle East (CHF 2.6 bn) and Asia (CHF 0.3 bn). The
Contemporary Value products managed in New York now have USD 20 bn of assets
under management.
The trend towards mandates, as well as unfavourable foreign exchange impacts, had
a negative effect on operating income, which declined by 6% to CHF 202.1 mn.
Performance fees accounted for CHF 1.5 mn of operating income in 2011 (2010:
CHF 8.2 mn). At CHF 165.4 mn, operating expense was almost in line with the previous
year. The cost/income ratio rose to 81.4%. Pre-tax profit decreased by 27% to
CHF 36.7 mn and the gross margin fell by 6 basis points to 46 basis points.
Vontobel Asset Management specializes in active asset management and is positioned
as a multi-boutique provider with the following areas of focus: “Contemporary
Value”, “Alternative Investments” (Harcourt), “Global Change Investing”,
“Fixed Income”, “Swiss Equities”, “Absolute Return” and “Multi Asset Class”. Each
boutique is run as an independent centre of expertise. Vontobel Asset Management
has three core competencies: targeted asset allocation, stock selection and
multi-manager approaches. It distributes its products via wholesale channels, directly
to institutional clients and through its cooperation partners. The Vontobel
Group has a longstanding and successful cooperation agreement with Raiffeisen
Switzerland under which it provides Raiffeisen clients with a broad range of investment
services. The Asset Management business unit has a presence in Zurich,
Berne, Geneva, New York, Frankfurt, Vienna, Luxembourg, Milan, Madrid, Stockholm,
Hong Kong and Grand Cayman.