Vontobel has completed the acquisition of the US-based private clients portfolio from Lombard Odier, which was announced on 19 October 2018, as planned.
With this acquisition, Vontobel complements its organic growth in Wealth Management and in the business with US clients. They will be served by the wholly owned and SEC-registered subsidiary Vontobel Swiss Wealth Advisors AG (VSWA), which has client relationship management teams in New York, Geneva and Zurich.
In addition to being a SEC-registered investment advisor, VSWA has Exempt International Advisor status in the Canadian provinces of Alberta, British Columbia, Nova Scotia, Ontario and Quebec. VSWA develops solutions for globally diversified wealth management for US investors and Canadian permitted clients.
In the course of the transaction, VSWA has gained two additional experienced relationship managers, who are joining VSWA from Lombard Odier.
A total of more than CHF 730m of assets under management have been transferred to Vontobel as a result of the transaction. In addition to wealth management clients, VSWA has taken over all of the brokerage private clients of Lombard Odier who wished to switch from their previous brokerage mandate to an advisory or wealth management relationship as part of the transaction. In total, Vontobel now manages around CHF 4.5bn of assets for North American Wealth Management clients (Wealth Management and EAM).
Lombard Odier and Vontobel have also entered into a cooperation agreement under which Lombard Odier will recommend VSWA as the preferred partner for private clients based in the US seeking a highly qualified, SEC-registered Swiss wealth management solution.
The acquisition was fully financed by Vontobel using own funds. With 18.9% at 31 December 2018, Vontobel continues to have a Tier 1 capital ratio that significantly exceeds regulatory requirements. The acquisition should already generate a positive profit contribution for Vontobel Wealth Management in 2019.