Widely anticipated consolidation in the Swiss financial market won't materialise, according to Vector Gestion president and CIO Dominique Blanchard.
This is despite Vector Gestion merging earlier this year with Lausanne-based Active Asset Management.
Talking to Citywire Switzerland Blanchard said: ‘Regarding independent managers, for the time being, consolidation has not really taken place yet.
‘With the implementation of new regulations and a certain number of independent managers getting close to retirement, we assume they will prefer to stop their activities rather than comply with standards.’
Despite predicting a decrease in the number of independent asset management firms, the CIO explains that consolidation is a difficult process that remains rare, Vector Gestion and Active Asset Management being an exception rather then the rule.
‘We decided to merge earlier this year in order to ensure the sustainability of our mutual activities, increase our recognition and boost our development as an independent manager in the French speaking region of Switzerland.’
According to Blanchard, the acquisition allowed Vector Gestion to increase the amount of assets under management, which amount to around CHF 500 million now; improve their service to clients; and help them meet future legal requirements.
It also allowed the company to in-source some of the departments such as IT and compliance.