Taking the client's view
Evolving into a client-centric investment manager
Zeno Staub | Martin Sieg Castagnola | ||
CEO | CFO | ||
December 9, 2019 | |||
Cautionary statement regarding forward-looking statements and disclaimer
December 9, 2019
This document may contain projections or other forward-looking statements related to Vontobel that are subject to known and unknown risks, uncertainties and other important factors. These projections and forward-looking statements reflect management's current views and estimates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Vontobel's future results may vary materially from the results expressed in, or implied by, the projections and forward-looking statements contained in this document. Potential risks and uncertainties include, in particular, factors such as general economic conditions and foreign exchange, share price and interest rate fluctuations as well as legal and regulatory developments. Vontobel has no obligation to update or alter its forward-looking statements based on new information, future events or other factors.
This presentation and the information contained herein are provided solely for information purposes, and are not to be construed as a solicitation of an offer to buy or sell any securities or other financial instruments in any jurisdiction, in particular Switzerland and the United States. No investment decision relating to securities or financial instruments of or relating to Vontobel Holding AG or its affiliates should be made on the basis of this document. No representation or warranty is made or implied concerning the information contained herein, and Vontobel Holding AG assumes no responsibility for the accuracy, completeness, reliability or comparability thereof. Information relating to third parties is based solely on publicly available information which is considered to be reliable. Vontobel undertakes no obligation to update or revise its forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable Swiss laws or regulations.
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Overview
Key messages
Why we are moving forward How we will deliver Outlook
Questions and answers
December 9, 2019
Key messages
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Seizing the growth opportunity from a position of strength
December 9, 2019
Client-centricbuy-side only
Pure-play investment manager
Active investing and technology as core skills
Asset Management
Wealth Management
Focus | One | |
Scale | ||
Vontobel | ||
Growth | Platforms & Services | |
Digital Investing
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Why we are moving forward
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Anticipating changing client needs and behavior
December 9, 2019
Challenges for | The criteria used to select a financial partner - and |
investors | the way clients interact with that partner - are |
changing |
Saving is | Off-the | General | Global | From | Client | Anytime | Digital |
dead | shelf | public is | pension | products to | journey is | Anywhere | touchpoints |
passive is | holding too | gap is | tailor-made | ever more | |||
not a | much cash | increasing | solutions | important | |||
solution |
Negative | Expected | > 80% | USD | |||
interest | return | held in | 15.8 | |||
rates | too low | cash1 | trillion2 | |||
Clients need ever more expertise and advice to secure | Clients want to be in the driving seat of their financial |
their financial future | journey and benefit from outstanding service |
- Source: McKinsey Global Banking Pools 2019
- Source: G30: Fixing the pension crisis - ensuring lifetime financial security
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Inspiring our clients - the key to our growth
December 9, 2019
80% of companies believe they offer a great | Annual growth rate of believers and achievers |
service, but only 8% of their customers agree3 |
80% | 15% |
8%
8%
Believers | Achievers | Believers | Achievers |
3 Source: Bain Customer-Led Growth Diagnostic Questionnaire: Satmetrix Net Promoter Database
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We are acting from a position of strength…
December 9, 2019
Organic growth and M&A track recordInvestment led - over 60 product awards in 2019
NNM (%) | 7 |
4 | |
3 |
2017 2018 9M19
3rd best selling fund manager1 in 10M19
Strong investment performance | Proven innovator and disruptor |
- 89% of funds2 with a 4- or 5- star Morningstar rating
- 83% of funds2 in 1st or 2nd performance quartile for 1 year (90% for 5 years)
- Vontobel Conviction Strategy outperforms funds of peers3 with
similar investment strategy for the period to Oct. 2019
1 | Source: Broadridge October 2019, Actively managed European and cross-border fund flows, flows in Morningstar Categories only and excluding Fund of Funds (out of 1482 Managers) | |
2 Based on AuM | ||
3 | Fund performance before management fees of Credit Suisse, Julius Bär, Pictet, Safra Sarasin, Swisscanto, UBP, UBS | 9 |
- built on our long-term perspective, our values and competencies, and our global talent
December 9, 2019
Long-term perspective | Values and Competencies | Global talent with professionals |
endorsed by committed family | from 48 different nations | |
shareholders | working across 23 locations | |
Non-Swiss nationals1 |
19.6%
49.3%
14.3%
10.5%
6.3%
Shares in core pooling agreement
Further shares of family members in the extended pooling agreement
Free-float 49.3%
Pooled shares of Vontobel families total 50.7%
Ownership
Foresight
Tenacity
We are close to our clients
We are specialists
We move fast
We create opportunities
22.6%
35.6%
6.0%
11.6%
12.4% 11.8%
Other EMEA
Asia Pacific
North America
Italy
UK
Germany
1 68% of employees are Swiss nationals
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How we will deliver
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We will deliver by taking the client's view
December 9, 2019
Pure-playbuy-side investment manager
One Vontobel
Driven by clients' needs
Committed to delivering solutions
Focused, first-class specialists working together
Using economies of scope to deliver outstanding quality
Shared goals, flat structures, aligned incentives
Delivering the edge
Exiting ECM/DCM and sell-side businesses
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We think in terms of client needs and deliver best-fit solutions
December 9, 2019
VontobelOneClient Units
Centers of Excellence
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Increased client focus will deliver growth
December 9, 2019
Asset Management
- Complement well-establishedasset-class specialization and the corresponding boutique model with regional sales focus
- Increase local footprint in US, Japan and selected European markets (France)
- Serve Global Bank clients worldwide on a coordinated basis
Wealth Management
Growth drivers
- Extend focus to UHNWIs
- Advise entrepreneurs and other decision-makers from SME segment
- Accelerate hiring through positioning as "employer of choice"
- Leverage expanded network of locations with proven experts in advice and financial planning
Platforms | ||
& Services | − | Become the leading partner for wealth management services in Switzerland, Germany, |
Hong Kong and Singapore | ||
Digital | ||
Investing | − | Launch an explicit challenger unit to make our competencies available to a wider group of |
investors via platforms and ecosystems
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Global investment expertise at the core
December 9, 2019
Investment philosophy
- Vontobel is an active asset manager with global reach and a multi- boutique approach
- We invest on the basis of our convictions
- We deliver value through our diverse and highly specialized teams who create strategies and solutions covering equities, fixed-income and multi-asset
Proven multi-boutique approach
Each of our boutiques draws on specialized investment talent, a strong performance culture and robust risk management.
Adding teams to expand offering to all client units
- Outsourced CIO
- Research offering
- Investment solutions and advice for all client units
Around 300 investment managers across global locations
Zurich
London
Hong Kong
Milan
Munich
New York
Selected fields of competences and our success1
Emerging Markets
Among the largest active EM managers in Europe
EM Bond (HC) Funds (#41)
EM Corporate Bond Fund (#31)
EM Equity Funds (#41)
Multi Asset and Income
Active Beta: 199% growth in AuM year to date October
Strategic income: 73% growth in AuM year to date October
ESG
MTX Sustainable Leaders
(16 Awards based on ESG criteria in 2019)
Clean Tech Fund with innovative impact calculation approach
Long track records
5 funds with track records
spanning more than 27 years
1 Promoter Ranking based on flows for respective category; Source: Broadridge October 2019, Actively managed European and cross-border fund flows, flows in Morningstar Categories only and excluding Fund of Funds
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Structured products create broader investment opportunities
December 9, 2019
Structured products meet a key part of client needs
- Income generating products in different market environment
- Customized product creation based on selected underlyings, payoffs and risk tolerances
- Access to underlyings not directly available to private investors
- Actively managed and thematic certificates
- Risk management products
Proven track record in innovation and products
Vontobel's digital channels (CHF bn)
issued | 7.5 | |||||
6.0 | We are | |||||
volumeNotional | bn)(CHF | 4.6 | willing to | |||
3.4 | disrupt | |||||
2.2 | - even | |||||
ourselves | ||||||
2015 | 2016 | 2017 | 2018 | 10M19 |
2 | ||||||||||||||
5% of AuM in Germany1 | and Switzerland2 | 1 | ||||||||||||
German Certificate Awards | ||||||||||||||
are invested in structured products | ||||||||||||||
German Certificate Awards | 2019/2020 | Swiss Derivative Awards | ||||||||||||
Overall ranking | ||||||||||||||
2019/2020 | 2019 | |||||||||||||
Best offer for equity and | Top Service Vontobel | |||||||||||||
Delta one certificates |
1 Source: Deutscher Derivate Verband (DDV) and Deutsche Bundesbank
2 Source: Swiss Structured Products Association (SSPA)
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Technology and data as key success factor going forward
December 9, 2019
People
One speed end-to-end thinking
Client journey and intelligence
Ecosystems
Modern Technologies
- Critical mass and depth to attract tech talent
- Continued investments in full stack, artificial intelligence and cloud skills
- Offer work environment that bridges with tech culture
- Technology area shifts to one-speed-delivery organization, interacting with client groups peer-to peer, interlinked by one agile way of working
- 93% of employees are already on one global platform
- Clients get faster and better access to new functionalities on an ongoing basis
-
The set-up of dedicated client units and a shared Marketing and Technology & Services function allows us to learn more about our clients and to upgrade our value
proposition by delivering a relevant contextual and customized client experience - Starting with the client's perspective, we think and act in ecosystems; for some clients, we are orchestrators; for others, we act as partners or suppliers/enablers
- Big data, artificial intelligence as well as Cloud services are key
- Cloud strategy while fully respecting data protection standards
- First-classcyber security
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Outlook
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Building the basis to go beyond 2020 targets
December 9, 2019
Confirm 2020 targets
Using focus and scale of new way of working for cost management
- Long-termentrepreneurial approach
- Increased client focus
- Deeper and better used capabilities
- Home to the best talents from investments and technology
Growth
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Questions and answers
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Disclaimer
Vontobel Holding AG published this content on 09 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 December 2019 06:35:05 UTC