Swiss banks see no net fund outflows in H1 '09



The assets under management of Swiss banks had declined by about one-third to four trillion Swiss francs last year compared to the previous year's.

Swiss banks, well known for their secrecy practices, are also facing international pressure, primarily due to efforts to crackdown on tax havens.

During the first six months of the year, Swiss banking giant UBS saw net outflows, while many others, including Credit Suisse, reported inflows of new monies.

"As regards new monies in the first half of 2009, there were further shifts between the banks... An estimate of the net change in new monies is difficult, but in the banks in Switzerland it is probably close to zero," the Swiss Bankers Association said in 'Banking Barometer 2009' report.

Even though assets under management -- measured by the securities portfolios held in client custody accounts -- dropped by a third to four trillion Swiss francs last year, the same climbed as much as 3.6 per cent in the first six months of 2009.

In 2007, assets under management stood at 5.4 trillion Swiss francs.

"Thanks to the recovery of the equity markets, managed assets in the first half of 2009 grew again, by 3.6 per cent.

"At the end of the year, managed assets will probably be higher than at the end of June; however, this depends on whether the positive mood that has returned to the stock markets will last," the report noted.

Moreover, bond holding in the first half of 2009 jumped 6.2 per cent primarily due to foreign customers.

The SBA said that future performance of assets depends heavily on the performance of the international financial markets and added the same would probably increase by year end.

"Assuming that the most recent, very positive trend on the stock markets will undergo a slight downward correction, but the mood of investors will not become more negative, managed assets in Switzerland will probably be higher at the year end than at the end of June," the report said.

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