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Swiss Life Builds Out Wealth Proposition
Tom Burroughes
4 November 2016
has won mandates to open 250 accounts with SFR7 million ($7.2 million), as part of a move to promote a new asset management offering to private clients, this publication can confirm. This is not the first time that Swiss Life has developed products and services targeting private clients in the wealth space. The company, along with players such as Luxembourg-based Lombard International Assurance, provides tailor-made wealth structuring solutions such as private placement insurance, a mix of portfolio management and an insurance structure.
The firm recently launched a pair of wealth management mandates, Swiss Life Premium Delegate and Swiss Life Premium Choice. They are overseen by the Swiss Life Asset Managers unit.
A media report said Swiss Life charges 0.8 per cent of the invested capital for the management of the assets. In addition to the fee, customers also have to pay 1.1 to 2 per cent in commission.
The business pits Swiss Life against banks such as Zuercher Kantonalbank that run such fund mandates. The Swiss Life model opens accounts with an investment of as little as SFr1,000, rather than ZKB’s minimum of SFr100,000, the firm confirmed.
In August, the firm reported adjusted profit for the first six months of this year from operations of SFr730 million, a gain of 4 per cent on a year before. Net profit was SFr500 million, up from SFr493 million a year earlier. Fee income rose by 3 per cent in local currency terms. Net new assets from third-party business totalled SFr4.9 billion (2015: SFr4.2 billion). Swiss Life Asset Managers had SFr44.4 billion in assets under management for third parties at the end of June 2016. Total assets under management came to SFr202.2 billion (9 per cent more than the end of 2015).