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Julius Bär invests in new Italian bank

Julius Bär, the Zurich-based private bank, is joining forces with Kairos Investment Management in Italy to establish a new private bank.

Published: 12 November 2012 14:57 CET

Julius Bär invests in new Italian bank

Photo: Sporst

The Swiss bank announced on Monday that it had reached an agreement with Kairos to create a new “onshore wealth management player”.

The Italian wealth manager has around €4.5 billion of assets under management.

Julius Bär said it plans to integrate its Italian SIM subsidiary into Kairos, while taking a 19.9-percent share of Kairos.

The transaction is subject to regulatory approval and is expected to close in the first half of 2013.

Separately the partners have agreed to apply for a banking licence after the deal is closed.

Under the agreement all Italian wealth management activities of the two groups will be run under the name Kairos Julius Bär.

The terms of the transaction were not disclosed.

The Swiss bank said the deal will “significantly strengthen Julius Bär’s long-term position in Italy”.

Meanwhile, the bank showed another aspect of its Italian connection in Geneva on Friday when it sponsored a gala event to celebrate the 100th anniversary of the birth of movie producer Carlo Ponti.

The event at the Bâtiment des Forces Motrices also honoured Italian actress Sophia Loren, who appeared with her two sons.

Loren, 78, a resident of Geneva, was married to Ponti, who died in Geneva in 2007 at the age of 95.

At the event she credited Ponti, whom she met when she was 16, for helping fulfill a dream she could have never fulfilled alone, Le Matin newspaper reported.

The private event was attended by 450 guests, according to the report.

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Germany takes third spot in global ranking of ‘ultra-rich’ people

The number of rich is growing despite the pandemic. Photo: picture alliance / dpa | Jens Kalaene

The year 2020 caused financial stress for many people across the world. But some people – including in Germany – actually got richer.

Overall across the world, the number of individuals with a financial wealth of over 100 million US dollars (€82.25 million) grew by 6,000 during the coronavirus pandemic year 2020, according to the Global Wealth 2021 report by the Boston Consulting Group (BCG).

Currently a record 60,000 people belong to the ultra-rich club. These individuals own 15 percent of the world’s investable assets, according to the report.

Germany came in at third place on global rankings, with around 2,900 of these “ultra-high net worth individuals,”. The US is at the top with about 20,600 people with a wealth of over 100 million dollars, followed by China with 7,800.

READ ALSO: Who belongs to the top 10 percent of earners in Germany?

What about private wealth?

People around the globe accumulated more wealth than ever before in the coronavirus crisis year 2020.

Private financial assets rose by eight percent year-on-year to a record 250 trillion US dollars (around €205 trillion), according to the analysis.

Rising stock market prices and growing savings contributed to this. For the first time, BCG also took into account tangible assets such as real estate or gold. Total wealth thus amounted to 431 trillion dollars.

In Germany, private financial assets, including cash, account balances, shares, pensions and life insurance policies, rose by around six percent to approximately nine trillion dollars, according to the data. Tangible assets increased by five percent to 13 trillion dollars.

“Germans traditionally invest in real estate,” said BCG partner and report author Anna Zakrewski. This is clearly shown by the real asset ratio of just under 60 percent, she said.

“At the same time, investors in Germany are saving at an above-average rate.”

Many people have been holding on to their money during the crisis, Zakrewski said, adding that temporary closures in the retail sector and travel restrictions were also putting the brakes on spending.

READ ALSO: How and why Germany’s super-rich list is growing

The number of dollar millionaires in Germany increased by 35,000 to 542,000 in 2020, according to the report.

The consulting firm said the increase could partly be attributed to the development of the euro exchange rate, which rose against the dollar. This had a noticeable effect on the conversion to the US currency.

Across the globe, 26.6 million people own financial assets of one million dollars or more – up by 1.8 million from the previous pre-Covid year.

The US led the global wealth ranking overall with 136 trillion dollars, followed by Asia excluding Japan (111.9 trillion) and Western Europe (103 trillion). In view of the expected economic recovery after the crisis, BCG believes global private wealth will grow steadily in the coming years.

READ ALSO: This is how many millionaires live in Germany

Who are the richest people in Germany?

As heirs to Aldi Süd, they became billionaires: Beate Heister and Karl Albrecht Junior are currently the richest people in Germany, with assets of 39.2 billion US dollars, according to Forbes.

In second place of the richest Germans is Dieter Schwarz, owner of the Schwarz Group, which Lidl and Kaufland belong ($36.9 billion) to. Theo Albrecht, the co-owner of Aldi Nord, is also in the top seven, with assets of $18.8 billion.

Internationally, however, another (super) market founder is leading: with 177 billion US dollars, Amazon founder Jeff Bezos is currently considered the wealthiest person in the world.

Graph translated by Statista for The Local Germany

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