In the same period, net new money inflows sunk to CHF0.4bn (£0.3bn), down from CHF 3.7bn (£2.8bn) in H1 2010 and CHF2.2bn (£1.7bn) in the second half.
The manager said the decrease in net inflows was “totally” attributable to the appreciation of the Swiss franc, the firm’s reporting currency, against the currencies in which the majority of its asset base was denominated, namely the dollar, euro and pound.
Net new money inflows at Swiss & Global Asset Management for H1 were CHF1.3bn, down from CHF7.4bn in H1 2010 and CHF2.3bn in H2.
The firm said its range of Julius Baer fixed income funds experienced “moderate inflows”.
It added that certain bond funds managed in-house by Swiss & Global Asset Management saw “encouraging demand” on the back of strong investment performance.
Swiss & Global assets under management were 1% lower at CHF79.6bn. The firm said this reflected a “significant negative currency impact of CHF2.2bn”.
“The fact that our asset and revenue base is reported in the Swiss franc, which has continued to strengthen considerably against the US dollar and the euro since the beginning of July, creates a significant hurdle for the growth of our bottom-line profit despite the positive development of our underlying businesses,” said chairman and chief executive Johannes A. de Gier.
