Julius Baer plans to list Artio Global Investors, a subsidiary formerly known as Julius Baer Americas, on the New York Stock Exchange later this year, depending on market conditions.
The Zurich-based group recently separated its private bank and asset management divisions, resulting in two distinct, independent companies.
Julius Baer’s GAM Holding division comprises GAM, Artio Global Investors and Julius Baer Asset Management Europe. Artio Global Investors is headquartered in America and provides portfolio management to intermediaries and institutions.
“One lesson that banks should have learned from the banking crisis is that in-house products are often not competitive. They are forced to go for a more open-architecture platform,” Stefan Angele, the managing director and head of investment management, said in Zurich this month. “Clients will force their banks and advisers to go to more open platforms. [They are] the trend of the future.”
Embedded in a “much less complex environment”, Julius Baer will continue to expand its international network and complete the shift of its services and product model towards an open-architecture philosophy, the group says.
Under the planned structure, GAM Holding will offer a broad, diversified range of equity and fixed income products.
Julius Baer, which recently opened its Russia fund to the British retail market, says investors can also expect a wider range of choices with the new structure. GAM recently strengthened its proposition by acquiring Augustus Asset Managers, a fixed income and currency investment specialist.
The trend towards consolidation and restructuring in the fund management industry continues to grow.
Last week Barclays announced it was selling off Barclays Global Investors, including iShares, its exchange traded fund (ETF) platform, to BlackRock. Aberdeen’s acquisition of Credit Suisse Asset Management is also nearing completion.
Advisers say banks have become so desperate to raise capital that they are now selling off the most profitable parts of their businesses.