Switzerland's Vontobel, Asia-Pacific's ANZ Sign Alliance Agreement

Tom Burroughes

27 November 2012

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 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.