Julius Baer pulls in $10bn in new money as advisor hiring spree continues

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Julius Baer is planning on continuing an advisor hiring spree it embarked on earlier this year which has so far helped the Swiss private bank attract CHF 9.2bn ($10.6bn) in net new money.

The Swiss private bank reported it had hired 57 advisors – known internally as relationship managers – in the first half of this year, increasing its advisor headcount to 1,305, according to mid-year results published Monday.

Overall, the firm currently boasts 7,178 full-time employees – a 4% increase from the end of 2022 – while its assets under management also grew by 4% to CHF 441bn ($509bn).

Net new money inflows, while impacted by clients cutting back on lending still reached CHF 7.1bn ($8.2bn) in the first six months of this year, the report revealed. Discounting the client deleveraging trend, Julius Baer said net new money inflows hit CHF 9.2bn ($10.6bn), compared to CHF 2.6bn ($3bn) in the first half of 2022.

During a Q&A session with analysts, chief financial officer Evie Kostakis said 45% of net new money came from seasoned relationship managers who had spent at least three years at the firm, while the remaining 55% came from new relationship managers, who are expected to contribute between CHF 2bn ($2bn) and CHF 3bn ($3.5bn) of net new money this year.

‘In the first half of 2023, with many uncertainties affecting client and market sentiment, Julius Baer has again demonstrated its attractiveness to clients and as an employer,’ Philipp Rickenbacher, chief executive officer at Julius Baer, said in the report. ‘A complex environment has not hindered us from achieving a strong start to the current strategy cycle – on the contrary, it has even allowed for a tactical acceleration of our push for scale in our key markets.’

Rickenbacher added Julius Baer had plans to continue hiring talent for the rest of this year and next, according to reports.

In an interview with Bloomberg, Rickenbacher said the bank has been benefiting from Credit Suisse’s near collapse and its acquisition by local rival UBS, but that it has also  ’been able to generate new money from a much broader array of sources’.

A number of Julius Baer’s new advisors recruits have joined from Credit Suisse and UBS since the March rescue deal, with more advisors expected to be leaving both firms in the coming months after UBS announced sweeping job cuts in June.

Among Julius Baer’s new hires were three new private bankers that joined its Latin America desk from Credit Suisse.

The private bank has also been bolstering its business in Brazil – Julius Baer Family Office – where it recently added a team of nine people in March. Julius Baer is also aiming to increase the capacity of its Brazil office later this year, according to its mid-year report.

A spokesperson for the firm said the bank doesn’t disclose specific net new money breakdowns across different geographies.

In addition, the firm has launched an associate relationship manager programme, which began with 20 participants this year and is expected to expand to 50 in 2024.

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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