Friday, 24 March 2017
Last updated 11 hours ago
Feb 9 2009 | 1:09am ET
Swiss private bank Julius Baer posted a profit last year, no thanks to its hedge fund business.
The firm’s GAM unit saw its assets under management fall by more than half in 2008. GAM managed US$39.2 million at the end of last year, compared to US$75.8 million at the beginning of the year.
In its year-end report, Julius Baer blamed the outflow on “heightened risk aversion among investors” in the wake of the Bernard Madoff scandal. But it added that the Madoff fallout could prove a positive for it, because it “ultimately should eliminate a large number of competitors offering lower quality, lower cost service.”
Julius Baer’s profit fell 30% last year to 661 million francs (US$569.5 million).