Julius Baer surprised investors on Wednesday morning by saying it would split its private banking and fund management activities into two separate listed companies.
GAM Holding, the new fund management group, will include GAM, Artio Global, the group??s New York based fund management business, and Julius Baer Asset Management Europe, a fund management business linked to the private bank that was previously being developed as a third pillar for the group alongside private banking and the GAM businesses.
Baer said the split would ??substantially increase the two companies?? strategic flexibility and enhance their market visibility?. Baer gave no indication of whether it had any deals in mind, but said the reorganisation should be completed by the end of the third quarter.
??In the light of challenges that many financial services business models are confronted with currently, we are convinced that both entities will benefit from their sharpened focus and the absence of competing interests?, noted Raymond Baer, the group??s chairman.
Baer said that, as an independent company, GAM Holding would be able to ??accelerate the development of its international institutional and US distribution franchise.?
The move may pave the way for the eventual disposal of the group??s fund management businesses.
