Eva Maria Hintner, you've been leading «Columbia Threadneedle Investments» in Switzerland for five years. How has the business developed since then?

Over the years we have grown the business steadily, including building up the institutional business. When I started, the institutional business was quite small, but it has doubled in size since then, whilst we have continued growing the wholesale business.

As country head it's important to me that we have growth across both channels.

Did you grow during the Covid period?

2022 was certainly a challenging year, particularly in the realm of asset management, a landscape we navigated, alongside many others. Whilst challenging, we had positive flows and nice growth in 2022. Today, we are one of the focus countries for Columbia Threadneedle in the EMEA region on the wholesale side, alongside the UK of course.

Our position among European countries has been strengthened as a result of our successes.

What was the original idea behind your appointment?

I was appointed to bring about change in Switzerland: a younger person not afraid to shake up the team and confident to align our focus to be more dynamic. It was a big challenge and was lot of work. I am pleased it has developed nicely for me and the team.

«I was hired to shift our focus towards more dynamism»

What were your strategic priorities?

Growth, primarily in net new asset sales.

Has this been positive every year since 2019?

Yes. Another priority was diversification in terms of clients and products. The product range at Columbia Threadneedle has also evolved.

We have our established blockbuster products focusing on strong small / mid-cap and large cap companies. But we've also introduced new products, such as global social bond, global equities and sustainable income products.

Your firm traditionally leans towards equities...

We have always provided a wide variety of solutions for clients. Recently, we have seen demand shift towards fixed income. A lot of money has been parked in cash and money markets.

Interestingly, in Switzerland, we have more fixed-income assets on the institutional side than on the wholesale side. As such, we made a strategic decision to better position ourselves on the wholesale side for fixed income, which is working well.

Three years ago, Columbia Threadneedle acquired BMO Asset Management EMEA. How has the acquisition developed?

The integration is complete, and we have seen a significant boost to clients and our business from the acquisition. The teams have been merged, both in Switzerland and in other countries, although there are still further synergies to be realized for clients, which we are working on.

How do you see Columbia Threadneedle's role in the ecosystem of our Swiss financial center?

In terms of size, we have a sweet spot. We're neither one of the giants nor one of the small players. This is important because it gives us the opportunity to partner with clients on a strategic level. In order to be able to do that, you need to manage a certain size of assets, have good strategies and certain synergies.

What is the core of your offering, what makes you unique?

We are an active manager with a high active share, focusing on active stock and bond picking with the ambition to outperform the benchmark.

«Our approach is focused on research intensity»

Our approach is focused on research intensity and our bottom-up approach benefits from this. Across our range of solutions, portfolios arise from the investment approach, designed around the clients’ requirements, and there lies the clients’ willingness to work with us.

And what else?

A second point is certainly sustainability, or what we call Responsible Investment, where our competencies are world-class. We continue to build strong strategic partnerships in this area.

For example, we collaborate with large banking institution in Zurich, most recently on two sustainable products that we launched. One of them just last summer, the Global Sustainable Enhanced Equity Income Fund. This also demonstrates our sustainability ambition aligned around what our clients require.

How do you view the controversy surrounding ESG?

We provide customers with what they want. Many want classic standalone asset class products, less thematic, perhaps even less sustainability. Others still seek sustainability. Our offering is always tailored to the needs of the client.

The debate in the USA is very different to that in Europe.

As mentioned, we exist to serve our clients and align with their requirements. Here in Europe, sustainability is a very important to our clients. Views on sustainability vary greatly across the world. Within our product range, clients can choose what they want to invest in.

There has been a lot of movement among asset managers currently. What were the main directions of this reshuffling on the product side, the central trends?

The trend towards «fixed income» has returned after being largely sidelined for some time, especially in the credit space. 2019 to 2021 were years with very strong inflows into responsible and thematic products. Part of this was also driven by regulation.

Over the past two years the environment has changed due to inflation and interest rate hikes. Thus, fixed income products have become more attractive, leading to a realignment of the fund shelf at various banks.

«For Swiss investors, investing in interest rate products is a challenge»

For Swiss investors, investing in interest-rate products is a challenge since portfolios are usually hedged, which comes with a slightly higher fee. It is challenging for them to find products that yield returns that help attract clients away from the high cash allocations.

Now the wind is changing.

Exactly, especially in Switzerland. We are facing interesting times.

What's next for interest rates?

Switzerland has clearly taken the first step here. I think there will be two more interest rate cuts this year. That's also been communicated by the SNB. In the USA, the mix of good economic data and higher inflation remains difficult.

I therefore expected the ECB to move faster than the Fed, which we saw recently.

And in general?

This interest rate situation naturally brings volatility to the market. Furthermore, 2024 is an election year in the USA. When we talk to clients, there's currently no clear direction. That’s why I often hear the word ‹diversification›.

Many portfolios are very equity-heavy with technology stocks—the ‹Magnificent Seven› for instance.

Diversification is sought, both regionally and by sectors. You can't time the market as there will always be unforeseen events. But you can build the portfolio to withstand volatility.

What investment themes do you see offering the best return prospects in the near future?

I think the equity side remains attractive.

Especially small and mid-caps?

Yes, among others. Small and mid-caps are very undervalued, especially European ones. The market hasn't caught up yet with the flows. It's difficult to estimate when momentum will come. But basically yes.

We also find Japan interesting; a lot of money is flowing there at the moment. Last December, we created a Luxembourg-based Japan product for this purpose.

Do you expect European small- and mid-caps to catch up?

Yes, that's our opinion and our focus for the year. We offer products with global, US, and Europe orientations. Interestingly, our flows mainly went into US and global small caps, and to a lesser extent to European.

«Our flows mainly went into US and global small caps, and to a lesser extent into European ones»

Customers only occasionally make larger investments in European small caps. Yet, these are undervalued... but investors tend to buy when the valuations are high.

Do you see good business opportunities for your company in the Swiss financial center in the medium term?

Yes. Switzerland is a powerhouse both in terms of assets and revenues. This also arises from the market structure with the significant banks. UBS and Credit Suisse are now one, but there is still Julius Bär, LGT and well-established banks in French-speaking Switzerland.

Then there are the Cantonal banks and the smaller private banks. Plus, there are family offices and larger wealth managers. It's a very diverse country in terms of target groups and clients, which continues to make it interesting for us.

We also see further expansion opportunities.

Let's talk about your personal preferences. What is your favorite place in Zurich for meetings outside the office?

When I'm not in the office, I'm usually at the client's premises. But for an informal coffee, ‘La Stanza’ is very nice, especially in summer. For lunch, my team and I very much enjoy ‹Bärengasse›. 

«When I'm not in the office, I'm usually at the client's premises»

The service is excellent, the food is very good, and the price-quality ratio is good (for Zurich).

And with clients?

When we go out to eat with clients, it has to be practical, preferably somewhere around Paradeplatz. It should be quick, good, and not too expensive. There's not much change there; it's always the same five names.

Where do you have an after-work drink?

To be honest, I prefer to exercise, go for a walk or be at home with my family.

Where do you prefer to spend your holidays?

My holidays are sacred to me. I'm a sea person – any destination by the sea can tempt me. In Switzerland, my favorite region is Graubünden. As a Tyrolean, I love the mountains. And Graubünden is a bit closer than Tyrol.

Eva Maria Hintner has been the Country Head Switzerland at Columbia Threadneedle Investments since 2019. Previously, she served as the head of the Zurich office for the fund arm of the British insurer Aviva. Other career milestones for the experienced saleswoman include positions at the French company Amundi, Fisch Asset Management, and UBS. Hintner holds an MBA in European and International Business Law from the University of St. Gallen (HSG). The native Austrian speaks five languages in addition to her mother tongue, German.