GPS, a Brazilian company of the Julius Baer Group, has signed a partnership agreement with the local digital financial advisor Magnetis, in which it will acquire a minority stake, the Swiss bank has announced.
With its current Brazilian presence - through the fully-owned subsidiaries GPS with BRL31bn (CHF8bn) in AuM, and Reliance Group with BRL20bn (CHF5bn) in AuM - Julius Baer is the largest local independent wealth manager.
Over the course of two years, GPS will acquire a minority stake in Magnetis, which manages BRL250m in AuM, for an undisclosed amount.
We see a large underserved demand in Brazil for digital investment services that appeal to the rising market of younger wealth"
Beatriz Sanchez, Head Latin America and Member of the Executive Board, Bank Julius Baer & Co. Ltd., said: "We see a large underserved demand in Brazil for digital investment services that appeal to the rising market of younger wealth. With our investment in Magnetis, we will be able to capitalise on this growing segment and collaborate with one of the pioneers in this field. In particular, it underscores Julius Baer's commitment to Brazil and to future client generations and its willingness to invest in the evolution of wealth management."
Magnetis, founded in 2012 and located in São Paulo, is a fully-registered CVM (Brazilian Securities and Exchange Commission) investment manager. It offers a scalable platform for investment advice and automated portfolio management solutions through a digital interface, appealing to the growing market of upcoming younger investors.
Julius Baer hopes the partnership will allow it to capitalise on the growing market of upcoming younger tech-conscious investors in one of its core markets.
Luciano Tavares, Magnetis' founder and CEO, said: "Magnetis was founded based on the same core values as GPS: providing independent, client-focused investment advice, exempt of conflict of interest. Magnetis has specialised in applying state-of-the-art technology to deliver high-quality investment management to individuals. Now we join forces with GPS' proven investment expertise to jointly create the best digital experience for investors of all profiles."
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