SKN | Vontobel Reports 3.2 Billion Francs in Net New Money, Driven by Private Clients

Vontobel has announced positive net new money inflows of 3.2 billion Swiss francs for the first nine months of 2025, pushing its total assets under management to 239.7 billion francs. This growth highlights a significant divergence in the market, where strong demand from private individuals is successfully counterbalancing outflows from institutional investors, showcasing the bank’s resilience in its core wealth management franchise.

Understanding Vontobel’s Key Performance Metrics

In wealth management, “Assets under Management” (AuM) represents the total value of all client money the bank manages. “Net New Money” (NNM) is the lifeblood of this business, measuring the difference between new funds coming in and money flowing out. Vontobel’s 4.6% AuM increase this year wasn’t just from strong market performance, which added 15.3 billion francs; it was crucially supported by 3.2 billion francs in these net inflows. This positive NNM shows the bank is successfully attracting new clients and assets, even as it navigates a challenging market.

A Diverging Trend: Private Client Trust Offsets Institutional Caution

The nine-month results reveal a stark contrast between Vontobel’s two main client groups. The private client division demonstrated remarkable strength, attracting 4.7 billion francs in new money. This represents a 5.7% annualized growth rate, placing it at the top of the bank’s target range. This strong performance, seen across all regions, suggests that high-net-worth individuals are actively seeking investment advice and moving assets, perhaps from a simple deposit or checking account into professionally managed portfolios. Conversely, the institutional client segment—which includes pension funds and other large entities—saw outflows of 2.0 billion francs, primarily from equity funds. This reflects a broader trend of large institutions becoming more risk-averse amid market uncertainty.

Navigating a Shifting Interest Rate Landscape

Vontobel’s performance highlights the challenges banks face in the current economic climate. A higher interest rate environment has a dual effect: while it can make investors nervous about equities, it makes fixed-income (bond) products attractive again. This is clearly reflected in Vontobel’s institutional segment, where inflows into fixed income were “offset by outflows in equities.” The bank’s overall AuM was also negatively impacted by 9.6 billion francs due to adverse currency effects, a significant headwind from the strong Swiss franc. The bank’s stable client transaction activity, however, suggests its digital banking and advisory platforms are effectively retaining clients, even if those clients are not trading as speculatively as in previous years.

Vontobel’s nine-month update provides a clear snapshot of a wealth management industry in transition. The bank’s core strength with private clients is proving to be a critical anchor, demonstrating trust and offsetting the volatility from the more cautious institutional segment. This focus on its “investment-led strategy” and the successful integration of the IHAG client portfolio show Vontobel is navigating a complex market by leaning into its primary expertise.

Closing Insights:

• Economic Insight: The divergence between strong private client inflows and institutional outflows suggests that while large “smart money” is de-risking, high-net-worth individuals are still actively seeking investment opportunities and professional advice.
• Professional Tip: For investors, a bank’s ability to grow AuM through both market performance and net new money (NNM) is a key indicator of health. Positive NNM in the private client segment is a particularly strong sign of market share gains.
• Broker Perspective: Analysts will view the 5.7% annualized growth in private client assets as a strong positive, confirming the bank’s core franchise. However, the ongoing institutional outflows, particularly in equities, will remain a point of concern until the interest rate and credit cycles show a clearer path forward.

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