A fortune architect

A real “fortune architect”, AAM Privatbank helps its clients to construct their
future on solid foundations. Providing advice in investments, portfolio management, as well as tax and financial planning, the establishment draws from its lengthy experience in wealth management to offer quality service. Its clients are primarily wealthy individuals from Switzerland, Germany, France or Belgium, as well as institutional clients and pension funds.
Founded in 1917 as a wealth management division of ATAG Fiduciaire Générale SA – today Ernst & Young –, AAM Privatbank became, in 1990, an independent body under the name of ATAG Gestion de Fortune SA. Due to stricter and stricter independence directives, it was taken over in 2000 by the AAA-rated Banque Cantonale de Bâle-Campagne. It was in 2007 that it finally became AAM Privatbank SA.
AAM has not escaped the financial crisis. In 2008, the bank recorded a 40% drop in profits. Its net income came to 32 million Swiss francs (21 million euros), in other words, 17% less than in 2007. In this environment, AAM favours high-quality investments selected by qualitative and quantitative analysis. “In the domain of shares, we favour companies presenting a high degree of self-financing as well as relatively stable cash flow,” explains Ralph Sauser, CEO of AAM Privatbank. As for bonds and structured products, “recent months have taught us that it is essential for issuers to have excellent solvency.”
Risk-corrected investment strategies allow AAM to meet the individual needs of its clients and to adapt at all times. Thanks to tactical and strategic coverage approaches, the bank is attempting to limit risks. Finally, in the case of inadequate quality of service, a guarantee exists for fees to be reimbursed.
AAM Privatbank is inevitably exposed to counterparty risk on the Swiss inter-bank market, where banks accord loans to one another. However, AAM’s principal role here is as a creditor, rather than a debtor.
Over the years, AAM has succeeded in creating trust-based relationships with its clients, a reassuring quality during a period of downturn. Moreover, the human scale of the company allows AAM to react quickly to developments on financial markets. Careful calculation, loyalty and common sense allow for transparent and independent advice.
AAM is fine-tuning its strategic direction by restructuring the Swiss and international acquisition network. Cooperation agreements have been signed with regional banks in Germany and France. A special team geared towards Eastern Europe has also been started up. “Contact with entrepreneurs and bigger investors allow us to introduce our family office services for this clientele and to develop and implement optimised and personalised structural solutions,” explains Ralph Sauser.
In the European fight against tax havens, bilateral agreements are allowing the lifting of bank secrecy. It is thus that on 12 June this year, France and Switzerland signed an amendment to their tax convention. “The debate on bank secrecy in Switzerland only affects our institute marginally,” states the CEO. “Due to our historic origin (ATAG Fiduciaire, Ernst & Young), optimised tax solutions have always been a part of our investment process.”
After a 2008 described as an annus horribilis, AAM is more confident about the future, but remains realistic about the evolution in future months. “The worst has been dealt with,” believes Ralph Sauser. “Thanks to the intervention of the main central banks, the situation has considerably calmed down in recent months. On the basis of major indicators, we are however not counting on a rapid and sustainable recovery. The share market may be favoured by the high liquid assets of numerous investors, but it remains vulnerable for the moment.”