Vontobel Holding Ag · SIX:VONN
Vontobel — Investor Day (November 2024)
94 slides from Vontobel's investor day presentation, Nov 7, 2024
Slide 1: Investor Day 2024
Investor Day 2024 November 7, 2024
Slide 2: Today’s speakers
Today’s speakers Christel Rendu de Lint Georg Schubiger Thomas Heinzl Markus Pfister Co-CEO Co-CEO CFO/CRO COO Head Investments Head Private Clients Head Finance & Risk Head Technology & Services Brian Fischer Christoph von Reiche Ben Hayward Andrew Jackson Tim Power Deputy Head Head Institutional C
Slide 3: Agenda
Agenda 13:30 – 14:30 Welcome, strategy update & financials 14:30 – 15:20 Investments 15:20 – 15:45 Private Clients 15:45 – 16:15 Break 16:15 – 16:40 Institutional Clients 16:40 – 17:05 Operations and Digitalization 17:05 – 17:10 Wrap up 3
Slide 4: Welcome, strategy update and financials
Welcome, strategy update and financials Christel Rendu de Lint Co-CEO Georg Schubiger Co-CEO Thomas Heinzl CFO
Slide 5: We stick to our strategy to be a leading investment house serving two complementary client segments
We stick to our strategy to be a leading investment house serving two complementary client segments Institutional Clients Investment Solutions Private Clients We provide all clients access to our full range of capabilities, with both client segments contributing to diversification and driving growth
Slide 6: Our capabilities and two complementary client segments deliver steady growth
Our capabilities and our two complementary client segments deliver steady growth +6% 244 220 228 199 204 207 9 8 11 2 165 171 5 4 3 5 6 5 5 4 136 139 1 2 2 2 2 124 1 -1 -8 NNM -11 AuM -13 CHF B CHF B 1 2 9M 2024 2020 2014 2015 2016 2017 2018 2019 2021 2022 2023 Q3 2024 2014 2015 2016 2017 2018 2019
Slide 7: We have strong recurring revenues and little dependency on interest rates
We have strong recurring revenues and little dependency on interest rates High share of recurring revenues And little dependency on interest rates AuM by mandate type, % of total AuM NII contribution to overall revenues 36% Execution/ Resilient business model with high share of Custody 33% recuring
Slide 8: Key milestones in 2024 towards becoming a leading investment house
We achieved key milestones in 2024 towards becoming a leading investment house for private and institutional clients Sharpen Accelerate Anticipate our organisation our growth clients’ needs Sharpened our client coverage Continued NNM growth achieved Closed the acquisition of a with two client segmen
Slide 9: Our priorities leverage our core strengths
Our priorities leverage our core strengths We deliver value to our clients through advice, active management and customization We grow profitably in Private Clients and Institutional Clients We deliver on our efficiency goals 9
Slide 10: Our priorities are supported by key industry tailwinds
Our priorities are supported by key industry tailwinds 1 2 3 Strong wealth growth in our Private End of QE and return of volatility call for Strong growth for customized solutions Clients focus markets1 active advice and management expected in Institutional Clients 1 Private Clients focus markets: S
Slide 11: Fixed income is back, and we are amongst the best players
Fixed income is back, and we are amongst the best players 1 2 3 Income returns are very attractive We have 2 top-performing franchises Most attractive bond yields versus equity dividend yields since 2006 Strong longstanding track records across Fixed Income segments CHF 40 B managed and seeing stron
Slide 12: Private markets bring additional source of return as well as diversification
Private markets bring additional source of return as well as diversification 1 2 3 Average quarterly return per asset class1 Attractive return profile of private markets Access to unique opportunities with low correlation to GDP with private Infrastructure Developing offering with Ancala and TwentyF
Slide 13: Customized solutions are an area of strength and expertise of Vontobel
Customized solutions are an area of strength and expertise of Vontobel 1 2 3 Fundamental Outcome-oriented equity exposure desired investing Client 1 Sustainability preferences expressed Client 2 Quantitative investing Volatility management preferred Client 3 Text Text Unique ability to combine our q
Slide 14: Private Clients: Grow steadily organically with existing and new RMs, and complement with inorganic bolt-on acquisitions
Private Clients: Grow steadily organically with existing and new RMs, and complement with inorganic bolt-on acquisitions 1 2 3 NNM growth1 within our target range of 4 to 6% and above peers 6.9% Existing and new RMs contributing to NNM 5.7% 6% growth significantly above industry5 5.6% 4.2% Focus on
Slide 15: Institutional Clients: Expand in high-margin areas, and accelerate distribution
Institutional Clients: Expand in high-margin areas, and accelerate distribution of existing strong track records 1 2 3 We have stable and higher margin We stick to active and expand into high- than peers in spite of decreased EM value added /high-margin areas exposure Expand into private markets and
Slide 16: Our priorities support our through-the-cycle financial targets
Our priorities support our through-the-cycle financial targets Target Growth Operating income growth 4% – 6% Net new money growth 4% – 6% Profitability Return on equity > 14% C/I ratio < 72% Capital & Payout CET1 ratio > 12% Total capital ratio > 16% Payout ratio > 50% 16
Slide 17: Trading Update 9M 2024
Trading Update 9M 2024 CHF B 9M 20241 1H 2024 20232 Highlights Assets under management 228 226 207 − AuM up 10% YTD on positive flows, performance, despite negative FX in Institutional Clients 112 111 103 Q3 Private Clients 110 109 98 − Continued strong Private Client flows within target range − Hig
Slide 18: We continuously focus on improving our performance and operational health
We continuously focus on improving our performance and operational health to create long-term value and maintain a capital market friendly position Long-term financial objectives Focus of our work 1 Earnings Grow the business (revenue and profit) Implement the CHF 100 M efficiency program while mana
Slide 19: Our strategy focuses on steady through-the-cycle top-line growth
Our strategy focuses on steady through-the-cycle top-line growth Total operating income development Net interest income CHF M 1H 2022 2H 2022 1H 2023 2H 2023 1H 2024 − Low share of NII ~8.5% of total operating income in 1H 2024 (LT average ~7.6%) Net interest and dividend income 32.6 68.8 94.5 85.2
Slide 20: The efficiency program is on track and will strengthen our operating leverage
The efficiency program is on track and will strengthen our operating leverage Efficiency program is on track Cost/income trend improving Gross savings trajectory, exit rate, CHF M % Estimated in-year implementation ~25 ~30 ~15 costs, CHF M ~100 ~80 79.2 78.4 76.1 75.8 ~40 Achieved exit ~39 rate end
Slide 21: Our strong and liquid balance sheet reflects our overall low risk profile
Our strong and liquid balance sheet reflects our overall low risk profile Strong and liquid balance sheet Highlights – balance sheet CHF B, 1H 20241 − Fully marked to market2 33.1 33.1 Due to − Highly liquid balance sheet (e.g., 222% LCR) and 1.5 Liquidity 3.6 banks capitalization (CET1 ratio 18.3%/
Slide 22: Strict capital management to create further “acquisition currency”
Strict capital management to create further “acquisition currency” Capital outlook to end-2025 Highlights CET1 ratio, %1 Ancala Basel III final − Highly capital accretive business model − Acquired significant stake − Overall RWA increase in Ancala; increase to 100% over the long term less than CHF 5
Slide 23: Key takeaways
Key takeaways Cost and revenue management to provide means for strategic growth investments Further creation of acquisition capital through continued capital management Remaining conservative and careful on risk taking 23
Slide 24: Clear avenues for profitable growth while keeping costs under control
Clear avenues for profitable growth while keeping costs under control We stick to our strategy to be a leading investment Our priorities leverage our core strengths house serving two complementary client segments We deliver value to our clients through advice, Institutional active management and cus
Slide 25: Q&A
Q&A
Slide 26: Investments
Investments
Slide 27: TwentyFour Asset Management
TwentyFour Asset Management Ben Hayward Head TwentyFour Asset Management
Slide 28: TwentyFour Asset Management overview
TwentyFour Asset Management overview Fixed income Performance is our Trusted partnerships specialist in Europe primary goal with our clients All resources dedicated Strong commitment Deep commitment to one asset class, investment team to an active high to client service are all fixed income speciali
Slide 29: Positioned for growth: products at scale
Positioned for growth: products at scale Asset Backed Securities Multi Sector Bond Outcome Driven (European) (European and global names) (European and global names) GBP 5.1 B GBP 8.8 B GBP 6.4 B Liquid securities Corporate Bond Strategy Strategic Income Strategy IG ABS Strategy IG European ABS Strat
Slide 30: One boutique, three investment teams, three distinct strategies
One boutique, three investment teams, three distinct strategies Short Term Bond Strategy IG ABS Strategy Strategic Income Strategy Strategy size GBP 5.0 B Strategy size GBP 3.6 B Strategy size GBP 8.0 B MTM yield (GBP) 5.1% MTM yield (GBP) 6.6% MTM yield (GBP) 6.7% 1 year performance 8.2% 1 year per
Slide 31: Strong and robust Assets under Management growth over the last decade
Strong and robust Assets under Management growth over the last decade Long-term AuM development AuM by business AuM by account type GBP B 23.0 20.0 20.3 5% 17.7 18.1 16.1 25% 14.0 43% 33% 11.3 7.8 62% 5.5 32% 4.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD Outcome Driven Institutional 2024
Slide 32: Leveraging strong track record in illiquid asset back investments
Leveraging strong track record in illiquid asset back investments TwentyFour’s High Yield ABS Strategy Return annualized Launched Minimum dividend Target return since inception 2013 paid every year 6-9% 7.8% Dividends – pence (GBP) Total return - pence (GBP) 12 250 240 230 10 220 210 8 200 190 180 6
Slide 33: Important Information
Important Information This document has been prepared and approved by TwentyFour Asset Management LLP (“TwentyFour”), a company of the Vontobel Group (“Vontobel”), for information purposes only, not for onwards distribution. Past performance is not a reliable indicator of current or future performan
Slide 34: Fixed Income
Fixed Income Andrew Jackson Head Fixed Income Boutique
Slide 35: The return of active fixed income management
The return of active fixed income management Market flows − 2024 has marked the start of returning flows in active fixed income − Flows from cash into money markets and now into traditional Fixed Income − Expectation that initial move to passive will now shift to active management − Emerging Markets
Slide 36: One boutique, three investment teams, three distinct strategies
One boutique, three investment teams, three distinct strategies GLOBAL & SWISS BONDS EMERGING MARKETS BONDS CORPORATE BONDS Global Bonds Government and quasi sovereign Bonds Euro Bonds Green Bonds Corporate Bonds Vontobel strategies Global Bonds Swiss Franc Bonds - Sustainable Local Currency Bond -
Slide 37: Our fixed income investment DNA
Our fixed income investment DNA Specialist − Dedicated, well-resourced and experienced team investing across the Fixed Income spectrum Fixed Income manager − Focus on generating alpha through both top-down and bottom-up − High conviction manager dedicated to the proposition that active management is
Slide 38: Strong alpha generation across the suite of strategies
Strong alpha generation across the suite of strategies Annual net performance of our EM flagship strategies vs benchmark and peers Since inception p.a. in % Hard Currency Hard Currency Hard Currency Hard Currency Local Currency Hard and local Asian Bond Sovereign Sustainability Sov Corporate Investm
Slide 39: Vontobel Outcome Oriented Strategy
Vontobel Outcome Oriented Strategy Overview Performance Market comparison Net returns (indexed, %) 8 − Considers active opportunities at Vontobel strategy 220 a global scale 6 − Brings together the best 200 4 opportunities from across the full 180 spectrum of fixed income 2 − Focus on complementary
Slide 40: Ancala
Ancala Tim Power Partner
Slide 41: Why Infrastructure?
WHY INFRASTRUCTURE? − Assets provide essential services with significant opportunity in the energy transition − Long-term, predictable and inflation-linked cash flow − Low correlation to other asset classes with resilience to volatility and economic downturns − Growing market with a significant and
Slide 42: Why Mid-Market Infrastructure?
WHY MID-MARKET INFRASTRUCTURE? Attractive risk-adjusted returns Attractive Supply- Far greater number of investible opportunities in the mid-market Demand Dynamics 5.5x the volume of mid-market transactions (50m-1bn) than large cap (1bn+) in L5Y1 Ability to source on a bi-lateral basis compared to l
Slide 43: Ancala: Delivering infrastructure differently
ANCALA: DELIVERING INFRASTRUCTURE DIFFERENTLY Robust business models with conservative capital structures and yield in first year >€4.2 BN AUM >50 PROFESSIONALS Deep asset management, investment and industry experience >80 INVESTORS 4 INDUSTRY PARTNERS Former CEOs and chairs of major infrastructure
Slide 44: Trusted by global investors
TRUSTED BY GLOBAL INVESTORS Over 80 blue chip institutional investors trust Ancala to deliver Ancala portfolio commitments by geography Ancala portfolio commitments by investor type 8% 3% 21% 7% 7% 52% 53% 27% 22% Pension Fund Fund of Funds Foundation & Endowment Sovereign Wealth Fund EMEA APAC Nort
Slide 45: Competitive advantages
COMPETITIVE ADVANTAGES Seeks to generate enhanced returns from sound investments Enhanced Returns from sound investments Proprietary Mid-Market Origination Proactive Value Creation Fully Integrated Approach to ESG Entrepreneurial Culture Past performance is not a guarantee of future results. There i
Slide 46: Important Information
IMPORTANT INFORMATION This document has been prepared by Ancala Partners LLP (“Ancala”) solely for informational, educational purposes only. Ancala is authorized and regulated in the United Kingdom by the Financial Conduct Authority. Information herein does not constitute an offer, solicitation, or
Slide 47: Equities Quantitative Multi Asset
Equities Quantitative Multi Asset Matt Benkendorf Andrea Gentilini Dan Scott Head Quality Growth Head Quantitative Investments Head Vontobel Multi Asset Jean-Louis Nakamura Head Conviction Equities
Slide 48: Video with Equities, Quantitative and Multi Asset
Video with Equities, Quantitative and Multi Asset Replay is available on the Vontobel Investor Relations' website.
Slide 49: Q&A
Q&A
Slide 50: Private Clients
Private Clients Brian Fischer Deputy Head Private Clients
Slide 51: Our Private Clients business at a glance
Our Private Clients business at a glance Who we serve 16 locations globally with focus on developed markets Mainly serving UHNWI, HNWI, financial intermediaries like family offices and external asset managers New York Miami Berne Basel Winterthur What we offer Zurich St. Gallen Hamburg Lucerne Offer
Slide 52: Private Clients – long track record of growth
Private Clients – long track record of growth Assets under Management Net New Money Growth Operating Income CHF B %, annualized CHF M 109.5 6.9 98.0 6.6 956 96.61 910 93.12 6% 5.73 837 82.4 5.6 205 734 395 241 4.2 231 4% 705 561 596 504 2020 2021 2022 2023 9M24 2020 2021 2022 2023 9M244 2020 2021 20
Slide 53: Four key success factors of the Private Clients business
The continuous growth and progress of the Vontobel Private Clients business is based on four key success factors Client- Capability Continuous Investment- centric to grow in develop- led hybrid developed ment of RM approach service markets workforce model Institutionalized investment set- Clients de
Slide 54: Open investment architecture including access to institutional capabilities
We offer our private clients an open investment architecture including access to institutional degree investment capabilities of our investment boutiques Investment capabilities Managed Solutions We continuously develop and manage our offering shelf to holistically cater for our clients’ future need
Slide 55: Client-centric hybrid service enabled through digital platform “Wealth”
We are committed to provide our clients a truly client-centric hybrid service enabled through our digital platform “Wealth” 2M Fully-fledged digital platform “Wealth” enables clients to define individually their interaction preferences; purely digital, personally with their relationship Logins/year
Slide 56: Growing organically as well as inorganically in developed markets
We continuously demonstrate our capability to grow organically as well as inorganically in developed markets Private Clients AuM by domicile Private Clients NNM by domicile 9M 2024, CHF 110 B 9M 2024, CHF 3.1 B Main Growth Contributors Other Other A: Organic growth Continuous expansion of existing c
Slide 57: Private Clients achieved significant growth by developing the RM workforce
A: Private Clients achieved significant growth by developing and growing the RM workforce AuM and Relationship Managers CHF B, FTE, CHF M Continuous market screening to capitalize on RM hiring 1 opportunities 109 97 98 93 Structured interview process to ensure intrinsic fit of potential 2 RMs with V
Slide 58: IHAG client book as a bolt-on acquisition
B: IHAG client book as a bolt-on acquisition to further expand and scale our business in the DACH region Acquisition of the IHAG client book supports our strategic ambition to expand presence in developed markets Signing and announcement September 19, 2024 Clients can expect a seamless transition du
Slide 59: Targeting the next generation segments with dedicated initiatives
Anticipating the demographic development in our focus markets, we systematically target the diverse next generation segments with dedicated initiatives Our “Next Gen” Success Factors Generations Next Generation within Private Clients We have developed a structured approach 14-59 years old to win Nex
Slide 60: Key Takeaways
Key Takeaways Investing is at the center of all our activities Our scalable, hybrid service model allows to efficiently distribute mass-customized investment solutions Gaining market share thanks to continued strong profitable growth path We are attractive for the Next Generation of our clients and
Slide 61: Q&A
Q&A
Slide 62: Institutional Clients
Institutional Clients Christoph von Reiche Head Institutional Clients
Slide 63: Our Institutional Clients business at a glance
Our Institutional Clients business at a glance Who we serve 20 locations globally Mainly serving institutional clients, financial intermediaries and consultants St. Gallen Zurich What we offer Bern Geneva Offering active investment management solutions Lugano tailored to our clients' evolving needs,
Slide 64: Improved flow dynamics amidst ongoing industry challenges
Improved flow dynamics amidst ongoing industry challenges Assets under Management Net New Money Growth Operating Income CHF B %, annualized CHF M 142.9 594 134.6 9.1 7.8 515 121.4 510 112.2 465 457 104.0 107.2 103.3 384 2.6 1.4 -0.6 -7.4 -7.1 2018 2019 2020 2021 2022 2023 9M24 2018 2019 2020 2021 20
Slide 65: Returned to outperformance versus many peers
Delivering solid performance in challenging markets, we have returned to outperformance versus many peers Long-term Since end-2021 peak Year-to-date %, fund flow growth annualized, %, fund flow growth annualized, %, fund flow growth annualized, January 2010 to August 2024 January 2022 to August 2024
Slide 66: Laying the foundation for future success
Laying the foundation for future success Sales Client Product evolution journey scale Drive profitable growth Design globally scalable client Commercialize strong track journey records, activate new strategies 66
Slide 67: Evolving our sales approach to drive profitable growth
Evolving our sales approach to drive profitable growth Strategic & holistic client coverage Technical sales Sales evolution Diligent sales practices Product strategy & development People are key to our success 67
Slide 68: Designing a globally scalable client journey
Designing a globally scalable client journey Scalable model Global alignment Client journey Client journey support Automation & technology 68
Slide 69: Accelerating proven track records while activating new strategies
Accelerating proven track records while activating new strategies High Alpha investment capabilities − High value adding Fixed Income Scale − Quality Equities − Multi Asset − Sustainability Product scale Solutions Accelerate − Leverage investment capabilities − Customize portfolios and delivery Alte
Slide 70: Solutions as a key element to long-term partnership
Solutions as a key element to long-term partnership Client needs Customization requests Examples Restriction / exclusions Vontobel Fund (CH) - Sustainable Swiss Equity 1 E.g., equity < 50%, no tobacco Income Plus2 Scalable customization Option overlay on Swiss equity income strategy Preferences / in
Slide 71: Our ambition is to partner with the leading asset owners globally
Our overall ambition is to partner with the leading asset owners globally Solution offering Strategic Active dialog core Ownership Our Swiss heritage, stable ownership Swiss Digital structure and holistic client experience heritage experience appeals to clients around the globe Client Client Global
Slide 72: Key Takeaways
Key Takeaways Our clear client engagement strategy is focused on profitable and sustainable growth Our leverageable and client centric global operating model will provide the flexibility and scalability needed to respond to changing client and market dynamics Our proven track record of strong perfor
Slide 73: Q&A
Q&A
Slide 74: Operations and Digitalization
Operations and Digitalization Markus Pfister COO
Slide 75: The new organization follows our client-centric focus instead of functions
The new organization follows our client-centric focus instead of functions T&S T&S priorities and targets Client-centric Technology Management − Client-centric and tech-driven − Operational excellence − Agile by result, not by ritual − Seek the closest sustainable path to client value − Make technol
Slide 76: Increasing our operational efficiency to enable growth
We enable our business to growth with increasing our operational efficiency Focus areas for efficiency program T&S Client-centric Technology Management 1 Consolidate IT infrastructure and application landscape Institutional Clients Platform Private Clients Platform − Overarching goal to simplify and
Slide 77: Efficient mass customization for our clients
We aim to deliver efficient mass customization for our clients E-Banking Trading 1 platform Usage All product compositions Web CID Portfolio 6+ boutiques Events and master data Browser Risk profile Client Journal Fully harmonized Domicile processes Client Profiling Scalability Standardization Case S
Slide 78: Case Study I – Client Profiling AI Use Cases
Case Study I – Client Profiling AI Use Cases
Slide 79: Seamless Integration of AI Capabilities into Private Client Processes
Seamless Integration of AI Capabilities into Private Client Processes “As an RM, I can speak live into my Salesforce app and AI “For investment proposals, AI consumes portfolio info Live Live extracts opportunities and tasks” and research and pre-generates transaction rationales” Vontobel MARS Vonto
Slide 80: Case Study II – Scalability Cloud Usage
Case Study II – Scalability Cloud Usage
Slide 81: Scalable and cost optimized cloud business case: High Performance Computing Grid
Scalable and cost optimized cloud business case: High Performance Computing Grid We invested in an Azure high performance compute grid to On an average day we typically employ between 3,840 and provide Structured Products prices. 10,240 CPU cores simultaneously. − Modern containerized deployment usi
Slide 82: Deep learning for structured product pricing using cloud computation
Deep learning for structured product pricing using cloud computation We help the business to grow while not taking more risks Enhancing speed and efficiency in Structured Products pricing and hedging is key to master increasing client demand Model Pricing (simple, observed in the Parameters market)
Slide 83: Case Study III – Standardization Platform Harmonization
Case Study III – Standardization Platform Harmonization
Slide 84: Boosting Scale and Efficiency through Standardization in IT and Backoffice
Boosting Scale and Efficiency through Standardization in IT and Backoffice Previous situation Goal Transformation Journey Key Achievements − Fragmented IT landscape − Retain the independence and − Transition to a single, − Enhanced agility in launching due to specific requirements creativity of each
Slide 85: Our Ambition – Efficient Mass Customization
Our Ambition – Efficient Mass Customization
Slide 86: Interactive Investment Proposal
One result of our mass customization initiative: Interactive Investment Proposal Live Under development Planned Efficiency Booster Investment Research & News Portfolio Quality Tailored Investment Proposals Interactive Investment Our research and news are Detailed real-time portfolio Selected Researc
Slide 87: Key Takeaways
Key Takeaways Strong focus on customer-centricity and tech-driven management Priority on reliable technology, end-to-end automation, and sustainable client value Key building blocks for efficient mass customization are client profiling, scalability, and standardization using embedded AI functionalit
Slide 88: Q&A
Q&A
Slide 89: Wrap-up
Wrap-up Christel Rendu de Lint Co-CEO Georg Schubiger Co-CEO
Slide 90: Clear avenues for profitable growth while keeping costs under control
Clear avenues for profitable growth while keeping costs under control We stick to our strategy to be a leading investment Our priorities leverage our core strengths house serving two complementary client segments We deliver value to our clients through advice, Institutional active management and cus
Slide 91: Upcoming events
Upcoming events Full-year results 2024 February 7, 2025 Annual General Meeting 2025 April 2, 2025 Refer to the Vontobel Investor Relations website for details: www.vontobel.com/calendar 91
Slide 92: Appendix
Appendix
Slide 93: Shareholder structure
Shareholder structure Vontobel families hold more than 50% of the share capital and are strongly committed to Vontobel Advontes AG 10.6% Vontrust AG 14.3% Shares in the Free float1 pooling agreement 49.1% 50.9% Vontobel Foundation 14.9% Pellegrinus Holding AG 4.7% Further shares of a family member 6
Slide 94: Important information
Important information This marketing document was produced by one or more companies of the Vontobel Group (collectively "Vontobel") for use Unless otherwise stated within the strategy's investment objective, information herein does not imply that the Vontobel in relation to Vontobel’s investor day.