The asset management business of Vontobel has suffered a 19% decline in profits, according to the company's half-year report.
Profits before taxes fell from CHF85.3 million on 30 June 2016 to CHF69.5 million on 30 June 2017.
Speaking to Bloomberg TV, the CEO of Vontobel Holding, Zeno Staub, said he doesn’t see margin pressures on asset management businesses easing any time soon.
‘It is coming predominantly from the shift towards passives, from the low-yield environment,’ he said.
Vontobel said diversification of its asset management business had a positive impact on results.
Vontobel's overall group results fell 4%, changing from CHF105.7 million achieved on 30 June 2016 to CHF101.5 million 30 June 2017.
Vontobel Holding grew its client assets by 6% in comparison with the same period a year previously.