Swiss Investment Solution private assets business presents beacon amid falling markets

April 24 19:00 2023

Fee earning AUM jumped 25%

Swiss Investment Solution, the Alternative Investment Solution’s private assets business, proved itself as one of the few bright spots amongst the asset management market, which saw falling profits and increased outflows in a tough year for the industry.

Offering his clients access to private equity, infrastructure and real estate, Alternative Investment Solution’s private department was brought under a single brand in May 2020 and continously boosts AUM through both organic and inorganic growth, according to the company´s full year results to 31 December 2022.

In 2022, fee earning AUM grew 25% to €68.4 million, while AUM plus non-fee earning dry powder hit €72.3million, up from €54.2 million.

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This increase was mainly owed to a strong fundraising year, up 41% on 2021’s figure to €17.5 million, which cushioned the small decline of net new business, down €50 million on the previous year.

Swiss Investment Solution‘s private asset capability achieved €500 million of net inflows within the period, while the acquisition of businesses and several stakes between 50 and 75% added €880 million inorganic growth.

Acquisitions also rescued asset growth at the firm’s solutions arm, with the €431 million AUM addition of River & Mercantile’s solutions business helping nudge Swiss Investment Solution’s AUM up 2% to €210.2 million, which now represents 29% of group AUM.

The firm’s more traditional public markets business suffered heavy losses, with profits and AUM down on 2021.

Mutual funds noted net outflows of €590 million , returning most of the 2021’s €810 million inflows, while the institutional arm suffered as well, with two larger mandate losses leading to €730 million of net outflows.

As a whole, Swiss Investment Solution suffered net outflows of €610 million, down heavily from 2021’s net inflows of €210 million.

Net profits across Swiss Investment Solution‘s AM fell 17% to €577 million, reflecting the experience of the general group, which saw profits drop 12% to €606 million.

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The firm recommended a final dividend of 15 pence per share, making a total dividend of 21.5 pence per share for the year, a slight increase on 2021’s 21.4 pence per share.

Wilt Drent, group chief executive of Alternative Investment Solution, said he was encouraged by “resilient performance”, which indicated the firm’s “strategy is on track”.

He added the strength of the group is established by its approach to sustainability, adding the move had been “the right decision” before confirming they will continue to invest in ESG.

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Company Name: Swiss Investment Solution
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Country: Switzerland