Impairment of Kairos goodwill following unprecedented difficult year for active asset managers
Julius Baer Group Ltd. / Key word(s): Miscellaneous
Ad hoc announcement pursuant to Art. 53 LR
Zurich, 12 December 2022 – Julius Baer announced today that the goodwill on its investment in Kairos Investment Management SpA (Kairos) will be further impaired. While net new money has been positive since the governance changes announced at the end of 2020, the impairment follows an unprecedented difficult year for the asset management industry and in particular active asset managers, with global financial markets showing significant declines across equities and fixed income that are especially relevant for Kairos.
The goodwill impairment, together with the impairment of the remaining amortisable customer relationships, will lead to a pre-tax non-cash charge of CHF 57 million, to be reflected in Julius Baer’s 2022 financial results. As per year-end 2022, no more intangible assets related to Kairos will be reflected in the consolidated financials of Julius Baer.
Italian asset and wealth management company Kairos is part of the Julius Baer Group, with Kairos management retaining an approximately 35% interest. Kairos, with assets under management of around CHF 5 billion, acts as a leading Italian 'investment house', focusing on innovative, actively managed investment solutions. While market conditions in 2022 provided significant headwinds for the industry, Kairos will continue to strengthen the foundations for the future long-term growth of the business.
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About Julius Baer
Julius Baer is the leading Swiss wealth management group and a premium brand in this global sector, with a focus on servicing and advising sophisticated private clients. In all we do, we are inspired by our purpose: creating value beyond wealth. At the end of October 2022, assets under management amounted to CHF 429 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and are included in the Swiss Leader Index (SLI), comprising the 30 largest and most liquid Swiss stocks.
Julius Baer is present in over 25 countries and around 60 locations. Headquartered in Zurich, we have offices in key locations including Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Mexico City, Milan, Monaco, Mumbai, Santiago de Chile, São Paulo, Shanghai, Singapore, Tel Aviv and Tokyo. Our client-centric approach, our objective advice based on the Julius Baer open product platform, our solid financial base and our entrepreneurial management culture make us the international reference in wealth management.
For more information visit our website at www.juliusbaer.com
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