Shareholders of Swiss private bank Julius Baer have approved a plan to spin off its fund of hedge funds arm, GAM.

Baer plans to split its private banking business and asset management businesses into two separately-listed companies. Shareholders are to receive one share in each of the newly-split entities for every one share they own of the current Julius Baer.

According to a press release from Julius Baer, the move will substantially increase the two companies' strategic flexibility and enhance their market visibility.

Both the private bank and asset management company will be listed on the SIX Swiss Exchange. The newly-independent asset management business will be called GAM Holding.