Switzerland’s Vontobel Group has signed a memorandum of understanding with Australia and New Zealand Banking Group (ANZ), in a deal that to some extent mirrors a similar arrangement made over a year ago between Julius Baer and Australia’s Macquarie.

Switzerland’s
Vontobel Group has signed a memorandum of understanding with Australia and New Zealand Banking Group, in
a deal that to some extent mirrors a similar arrangement made over a year ago
between Julius Baer and Australia’s
Macquarie.

The MoU means Vontobel will expand its activities in Asia-Pacific – primarily in the growth markets of Australia,
New Zealand, Hong Kong and Singapore, the
banks said today. Vontobel will provide expertise in global investments,
structured products and tools, client advisory and client processes to the private
banking business of ANZ. ANZ, which aims to grow its own private banking
business in Asia-Pacific, wants to use Vontobel's expertise in the areas of
investment management and structured products, as well as its advisory
services for wealthy ANZ private clients.

The move is a sign of how Swiss banks, facing pressures in
traditional markets less tolerant of Swiss banking secrecy, are branching out
into the Asia-Pacific region. In July this year, Julius Baer and Bank of China
entered into a strategic agreement whereby they will mutually cross-refer
clients and collaborate on marketing activities. In October 2011, Julius Baer
and Australia’s Macquarie
entered into a strategic collaboration deal: the Swiss firm refers clients’
investment banking transactions to Macquarie
and the Australian firm refers clients who require private banking services to
Julius Baer. Macquarie’s Asian Private Wealth
business has also been transferred to Julius Baer.

Growth strategy

Explaining the move, Vontobel said: “The business with and
for the clients of third-party banks forms part of Vontobel's growth strategy
and enables it to accelerate its entry into new market areas, thus
complementing its own client acquisition and distribution activities.”

“Under the planned alliance with ANZ – which is expected to
commence in the first half of 2013 – Vontobel's investment and product expertise
will be offered via an extensive distribution network across the region and
will thus be made available in multiple locations in Asia-Pacific.

ANZ Global Wealth and Private Banking chief executive Joyce
Phillips said: "This Memorandum of Understanding is another step in
bringing our super-regional strategy to life in ANZ Private Bank. The planned
alliance will bring a truly global perspective to the way we view investments
as part of a strategy to provide clients with a holistic approach to managing
their wealth."

The support that Vontobel intends to provide in the area of
investment management will mainly focus on global asset allocation, discretionary
portfolio management and selected investment products, it said.

Zeno Staub, CEO of the Vontobel Group, said: "The
planned alliance with ANZ offers attractive growth potential for our group and is
a perfect example of our efforts to systematically extend our business
activities into new growth markets."

The move gives Vontobel, with SFr140 billion ($150.9
billion) of client money, as of 30 June this year, a chance to significantly
widen its client base. ANZ Global Wealth and Private Banking has a distribution
footprint across Australia, New Zealand, Hong Kong,
Singapore, Taiwan and Indonesia.