American investors find allure in Switzerland's financial hub
In the dynamic world of international finance, the Vontobel Group has witnessed significant growth in its assets under management from North America. As of the end of June, these assets amounted to an impressive CHF 18.1 billion.
This growth can be attributed to a substantial inflow in both the private client and institutional segments within the US business. The US market, despite the challenges posed by regulations such as the Foreign Account Tax Compliance Act (FATCA), continues to be a key focus for the Zurich-based bank.
The strict provisions of FATCA, introduced in 2014, impose a high administrative burden, combined with corresponding costs and legal risks on financial institutions. However, Vontobel seems to have navigated these challenges effectively.
In an effort to further strengthen its presence in the Americas region, Vontobel has appointed a relationship manager for private clients. This professional is based in the United States, but the identity remains undisclosed at this time.
The Swiss Bankers Association, in its recent industry day, highlighted the favourable framework conditions in Switzerland. However, these benefits are somewhat impaired by additional US taxes. Martin Hess, Chief Economist at the Swiss Bankers Association, stated that in such an environment, security has become a coveted commodity.
Experts predict an overall increase in demand for capital outflows from the United States or for relocation outside the country due to geopolitical tensions. In this context, institutions like Vontobel, along with Pictet, UBS, and Julius Baer, which specialise in American clients, are likely to see continued growth.
Interestingly, the assets under management from North America for the Vontobel Group almost equate to the combined assets under management from the UK and Germany. This underscores the bank's strategic focus on the North American market.
As the global financial landscape continues to evolve, Vontobel's growth in the North American market serves as a testament to its resilience and adaptability in navigating complex regulatory environments and meeting the needs of its clients.
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