Swiss Pension Fund Buys Bank
A first in Swiss banking: a pension fund is buying up a private bank in Switzerland with a view to creating a pension-focused bank.
It stands out among the raft of recent deals in Switzerland: Tellco Vorsorge in central Switzerland is buying Zurich-based Dominick Private Bank. Together, they will become Switzerland’s first pension-focused bank, the two said in a statement on Tuesday.
While consolidation has been rife among private banks in recent years, the move marks the first time a pension fund has entered the space. Switzerland’s $800 billion cash-rich pension fund industry is increasingly encroaching on banks’ turf.
Tellco is a considerable Swiss pension fund player whose 130 employees provide pension and wealth services for private and institutional clients, as well as a real estate arm.
The merger will create a bank with more than 6.5 billion Swiss francs under management – the larger portion of which has been brought into the union by Tellco.
A closer look at the details reveals the strategic savvy of the deal: a «pension» bank can differentiate itself in a crowded private client market with services «from cradle to grave» for a client’s entire life span.
Read full content here: Finews
