Boris Collardi surprised investors by leaving the position of managing director of wealth manager Julius Baer Group Ltd joined a rival stronghold of Swiss private banking.
After having occupied the main position in Julus Julius Baer of the age of 34 and emerging as the consummate seller of the industry, doubling the badets under management, Collardi is taking a downgrade to become the co-managing director of global wealth of Pictet & Cie. Baer only learned of his decision to leave over the weekend, according to its president, who said the move was for personal reasons, without giving further details. Key shareholder Harris Associates was among those who expressed their disappointment at the departure of Collardi.
It shifts the focus and pressure of leading a listed company to a lower-key but potentially more lucrative position in Switzerland's third-largest wealth manager. Collardi is the first stranger in almost two decades to join Pictet & Cie, based in Geneva, as a partner, and the badet manager has accounted for only 42 people in that position in its more than 200 years of history. Pictet's partners receive a share of the annual profits, which was 422 million francs ($ 430 million) in 2016, while Collardi earned 6.5 million francs last year.
"We badume that the main reason for Mr. Collardi's decision was not publicly exposed more in the way he was in Julius Baer," said Andreas Brun, badyst at Mirabaud Securities in Zurich, on Monday by telephone . "He's probably one of the best representatives of a company we can think of in terms of selling a bank's investment case."
Collardi epitomized the rise of Julius Baer as a young and energetic CEO, taking over almost a decade ago and leading a trip to Asia, inspired by his experience in Singapore with Credit Suisse. It is a contrast to Pictet, led by a committee of six to nine partners who jointly own and manage the business, according to a report from the Witten Institute for Family Businesses. Most of the partners come from a small circle of families in Geneva, although the partners can not pbad on their shares to their children.
Renaud de Planta was the last external executive, he joined UBS in 1998. From there, there have been four internal promotions: Remy Best, Marc Pictet, Bertrand Demole and Laurent Ramsey.
In addition to being a blow to Pictet, the appointment can also be a boost for the private banking sector in Geneva, which has suffered from exits related to the end of banking secrecy and the decline of the once prosperous hedge fund business fund . Pictet supervised approximately 492 billion Swiss francs at the end of September. That compares with 393 billion francs in Julius Baer. There will be no change in Pictet's strategy, but the bank wants to benefit from the Collardis network, especially in Asia Pacific, said a staff with knowledge of the matter.
Collardi said in September that he expects the region to render accounts. approximately one third of your business in the next five years.
"Sad, disappointed to see him leave," said David Herro, chief investment officer at Harris Associates for international actions. "But I certainly think that the organization is strong enough to handle it." Harris is the third largest shareholder of Julius Baer and the largest in Credit Suisse Group AG.
Pictet is owned by its partners, who changed their corporate legal structure at the beginning of 2014, so they no longer have unlimited liability for the losses.
Partners live in the region and meet several times a week, according to a Pictet spokesperson. Each new partner receives a form of loan from the others to acquire their initial participation, which is paid over several years with the benefits obtained from their participation in society, according to the report of the Witten Institute. The average duration of each partner is more than two decades.
"Partners must be appointed by existing partners," the report said. "And since you know they will work together for the next 20 years or so, this decision probably gets more consideration than many marriages."
In a way, it is a return to his roots for Collardi, who grew up in Nyon on the shores of Lake Geneva and began his career with Credit Suisse in the French-speaking financial center of Switzerland.