Annual Reports 2011 V ontob el Group - Vontobel Holding AG

advisory expertise. This net inflow of new money has enabled us to further strengthen
our presence in our focus markets of the US and the emerging markets – especially in
the Middle East and Asia, as well as in Eastern Europe. Our volume of client assets
originating from emerging markets now totals CHF 9.5 bn.
Conservative risk profile – strong balance sheet
A conservative risk profile is of critical importance in difficult times. We have used our
expertise to prudently manage the risk positions on our balance sheet – as reflected by
our continued strong BIS tier 1 capital ratio of 23.3%. In addition, we have promptly
addressed the growing regulatory requirements relating to the cross-border business
and are focusing intensively on adapting our business to the new regulatory framework.
Developments in our business units
In Private Banking, we are continuing to concentrate our activities on selected focus
markets. In addition to our Swiss home market, they comprise Germany, the US and
the emerging markets. These are regions in which we have been able to successfully
acquire new assets. In view of the very low levels of client activity in Private Banking,
profitability and efficiency were well below our targets.
In Investment Banking, we were unable to maintain the earnings power we displayed
in prior years due to the rise in risk premiums in Europe and the resulting volatility.
However, we largely achieved our market objectives and were able to defend our
strong position in the Swiss market. Our Financial Products division secured a place
among the top-10 providers in Germany. This represents an important milestone in the
international expansion of our business.
Asset Management, which has been led by Axel Schwarzer since spring 2011, achieved
a successful performance in the area of asset gathering, reporting impressive inflows
from institutional clients: over a period of 12 months, it attracted CHF 6.3 bn of net
new money, of which CHF 2.9 bn alone stemmed from growth markets in the Middle
East and Asia. Our global equity strategies for emerging markets and for developed
markets both achieved top rankings over 1, 3 and 5 years in a global performance
comparison. This confirms Vontobel’s competitiveness in terms of our investment
expertise and sales capacity.
Strong positioning is a source of opportunities
In the current challenging environment, our strong positioning, established brand and
solid balance sheet represent key success factors. Vontobel’s integrated business
model is founded on our strengths in wealth management, investment advisory, risk
management and product development – which represent our core competencies – as
well as on our independence. These different aspects form the basis for the achievement
of our ambitious mid-term targets. At the same time, we anticipate that conditions
will remain difficult over the coming months and we are adjusting our business
accordingly. This includes our efforts to significantly increase operating efficiency.
Shareholders’ letter
Vontobel Group, Annual Reports 2011 5