(June 4): The Singaporean state has built up a stake of about 3% in Julius Baer Group, providing a major boost for the Swiss wealth manager as it struggles to reach its targets on attracting new money and reining in costs.

The acquisition -- through wealth fund GIC -- will come as a relief for Chief Executive Officer Bernhard Hodler after Julius Baer’s stock fell the most among Switzerland’s biggest companies last year. Blackrock Inc. and Wellington Management are also among the company’s top shareholders.

Hodler is under pressure amid a prolonged stretch of lacklustre returns as he works through cost cuts and purges riskier accounts. Last month, the bank reported new client money that fell short of its targets. Julius Baer has put together a shortlist of both internal and external candidates to replace him as CEO, and may make a decision by the third quarter, according to people familiar with the matter.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook