Vontobel Asset Management has strengthened its partnership with Swiss banking group Raiffeisen, running up to the end of 2020.
Raiffeisen will focus on serving and advising clients in the investment business while Vontobel will concentrate on product development and product management.
In addition, Vontobel will still be in charge of developing and managing selected asset management products for the Raiffeisen Group.
Also Vontobel is to acquire Vescore (formerly known as Notenstein AM), a subsidiary of Raiffeisen with CHF16bn (€14.7bn) of AUM that provides advice and service to institutional investors.
The purchase of Vescore will allow Vontobel Asset Management to expand its footprint in Switzerland as well as in the institutional business in its focus market Germany.
The acquisition, pending to regulatory approval, is expected to close in Q3 2016 and will be financed entirely out of Vontobel’s own funds.
“This client-centric partner model represents an important strategic step for us and supports Raiffeisen’s claim that we provide our clients with a first-class advisory, service and product offering.
“By introducing new distribution concepts and digital technologies, we are creating the basis for our future growth in the investment business. With Vontobel as our partner, we are very well positioned in asset management and can deliver an optimal response to the needs of our clients.
“This partnership covers an important part of the diversification strategy we are pursuing,” commented Patrik Gisel, CEO of Raiffeisen Switzerland.
Dr. Zeno Staub, CEO of Vontobel, said: “The deepening of our collaboration in the asset management business of both companies, with the clear division of roles, is the right step forward. This stronger partnership will generate additional benefits for Raiffeisen and Vontobel clients.
“We are delighted to have the opportunity to give Raiffeisen even greater support in the planned growth of its investment business through our asset management offering and service. With the acquisition of Vescore Ltd, we are pursuing our carefully considered growth strategy in our target markets.”
As of 31 December 2015, Vontobel had CHF187bn (€171.8bn) in assets under management.