I just published a new study with one of my HK-based Senior Research Analysts, Bryan Liu, on the Swiss Asset and Wealth Management industry.

Below is the press release… for additional details, click here

EQUITY FUNDS IN SWITZERLAND ATTRACT 57% OF FLOWS SINCE 2008, MOSTLY TO PASSIVE FUNDS; PRIVATE BANKS GROW MOSTLY IN ASIA; INSTITUTIONS ARE SWITCHING FROM MANAGED ACCOUNTS TO FUNDS

Hong Kong and New York – June 16, 2011

In a new research study, Spotlight on Switzerland: Funds, Flows, Wealth Management, and West-to-East, Daniel Enskat, Head of Global Consulting for Strategic Insight, states that “Switzerland, despite some unwanted public attention since the financial crisis, remains instrumental for the global asset management industry: as a private banking hub, for advisory and investment solutions, to identify upcoming product trends, and as a link between West and East.”

According to Strategic Insight data, total assets under management in Switzerland have grown by 30% since the height of the global financial crisis in December 2008. States Enskat: “Net flows to long-term funds in 2010 reached $25 billion, three times higher than in 2009, and 25% higher than pre-crisis in 2007, with equity funds in Switzerland attracting 57% of all long-term industry flows from 2008 through Q1/2011, mostly to passive funds.”

He added, “FATCA and the newly proposed Swiss banking rules could impact how and where Swiss private banks collect and manage client assets. The data shows most growth for Swiss private banks coming from Asia Pacific and emerging markets of late, along with opportunities in new client segments.”

Other key findings from the report include:

• Institutions are Switching From Managed Accounts to Funds: Institutional mutual funds and share classes in Switzerland tripled in assets and number of products since 2005, reaching $200 billion in assets overall. Strategic Insight notes a growing trend of institutions using fund vehicles instead of managed accounts, both in Switzerland and industry-wide.

• A Tactical Quest for Commodities, Absolute Return, and Back to Europe: Looking at best-selling investment categories in the last 12 months, commodity funds led the list with $6 billion in new money, followed by Bond Europe and Equity Europe with $4 billion and $3 billion, respectively, as well as selected Absolute Return themes. Commodities, on aggregate, held the top-selling category spot in Switzerland in the last two years, adding a combined $13 billion.

• Concentration of Distribution Domestically, but Third-Parties in Private Banking: The Swiss fund industry, similar to other local markets in Europe, is highly concentrated with a market share of 83% for the top ten managers. However, increasing use of non-proprietary fund managers in private banking and wealth management channels has helped international firms raise significant assets through their cross-border fund offerings and institutional activities.

• Stagnating in the West, Growing in Asia – West to East: Despite only marginal aggregate growth, outflows from developed markets have been met with strong growth for private banking across Asia. Swiss private banks are heavily targeting and investing in their business across Asia Pacific – we provide case studies for UBS, Credit Suisse and other firms.

For more information on this report, please visit: http://www.strategicinsightglobal.com/

About Strategic Insight

Strategic Insight is a research and consulting firm that supports over 250 companies around the world with analysis, perspective, and data on the fund industry; its Simfund databases, the world’s analytical source for mutual fund business intelligence, track flows, assets, performance, ratings, and other intelligence on more than 65,000 portfolios and many more fund share classes globally.

STRATEGIC INSIGHT, an Asset International Company
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