Vontobel is seeing momentum from last year's record results continuing into the first quarter, with high inflows of net new money, particularly into the wealth management business, according to a media release in conduction with the annual general meeting (AGM).

Still, Vontobel realizes it is not immune to market developments. «When share prices fall globally, this has an impact on our assets under management and therefore on our income,» says Vontobel CEO Zeno Staub.

Institutional investors were reluctant to invest in asset management in the current environment characterized by rising interest rates and major geopolitical uncertainties, he said. 

Limited Exposure

Vontobel estimates the share of Russian and Belarusian discretionary mandates, including funds, at less than 0.1 percent of total assets under management. «All relevant exposures are limited to the emerging markets strategies developed in Zurich,» the CEO said. With the exception of one fund with total assets of 30 million Swiss francs, all Vontobel funds remained open, he added.

Staub went on to say that Vontobel’s conservative business model means its client base is minimally affected by international sanctions. 

«Based on our conservative lending policy, the declining value of collateral on Russian securities has no financial impact. Consequently, we currently do not expect any value adjustments to be needed in respect of our loan book and our own treasury portfolio,» he said.

End of an Era

The newly elected chairman of the board of directors, Andreas Utermann, succeeds Herbert Scheidt, who has stepped down for age-related reasons. Scheidt spent 20 years at Vontobel, first as CEO and then as chairman of the investment house starting in 2011.

«My primary role will be to support Vontobel as it executes its defined strategy while maintaining a long-term perspective,» Utermann said in his inaugural speech.