BlackRock targets Swiss banks and wealth managers with tailor-made ETF solutions
BlackRock, the world’s largest asset manager with almost $5tn in assets under management, is looking to transition from being a pure product provider to being a service provider targeting banks, fintechs and asset managers in Switzerland. Sven Wuerttemberger, head of iShares in the German-speaking part of Switzerland, has been charged with providing tailor-made products for private banks and independent asset managers with Simon Stalder doing a similar job at iShares in Switzerland for external wealth managers and family offices. The company is providing everything from product analysis to transaction support and trying to tie its customers to the iConnect platform, which commits customers to having the majority of client portfolios in ETFs.

Blackrock, the biggest wealth manager, wants to be more than a mere fund trader. The U.S. firm also positions itself as a provider of investment services and is seeking the cooperation with banks, fintechs and asset managers in Switzerland.

Blackrock has almost $5 trillion in assets under management, making it by far the biggest wealth manager. iShares, a unit of Blackrock, is the leading company in the booming trade of ETFs, exchange-traded funds and processes some 60 percent of ETFs in Switzerland, according to estimates. Blackrock dominates the global sale of financial products. But it wants more.

More Than a Provider of Funds

To achieve that, the company is in the process of changing its profile. iShares is an important pillar for the change of profile. «The aim is to change from being a pure product provider to being a service provider,» said Sven Wuerttemberger (pictured below) in an interview with finews.ch. Wuerttemberger is the head of iShares in the German-speaking part of Switzerland.

The change is being managed discretely and only rarely catches the headlines. It did, when Philip Vasan joined Blackrock in July.

Tailor-Made Solutions

Vasan was a veteran banker at Credit Suisse (CS), managing private banking in the U.S. for the Swiss giant, before it was being sold.

At Blackrock, Vasan is now charged with providing tailor-made products for private banks and independent asset managers.

Product Analysis – Transaction Support

Simon Stalder does a similar job at iShares in Switzerland. Stalder also has a past at CS. He is responsible for the external wealth manager and family offices unit at iShares. The banker has a team of four due to be expanded further.

The service on offer at iShares is more than a product series. The company is providing everything from a product analysis to transaction support, according to Stalder. «Entire solutions concepts, such as model portfolios, increasingly are in demand,» the iShares banker said.

iConnect Platform

The Blackrock unit is cleverly tying its customers up via the iConnect platform, which is also a responsibility of Stalder in Switzerland. Once you join iConnect, you commit yourself to have a majority of your customers' portfolios in ETFs. iShares is assuming the marketing and training duties.

The platform currently has 19 asset managers signed up, according to research by finews.ch.

Wuerttemberger has plans going beyond the independent asset managers. «The offer of advisory services is a pillar for future growth,» the iShares manager said.

In Talks With Smaller Banks

iShares hopes to sign up further institutional clients in Switzerland, providing them with ready-to-use ETF solutions and portfolio checks. «We are in talks with several cantonal and regional banks for that purpose,» Wuerttemberger said.

Ready-to-use portfolios, research plus risk control: sounds almost like fast food with a waste management guarantee. A tempting offer for small and medium-sized banks eager to cut costs in an environment of zero interest rates but still intent on growing their asset management.

iShares is also looking to foster a cooperation with fintech firms. Wuerttemberger believes that ETFs are ideal for their purposes.

No Rival for Banks?

iShares has nothing to worry about competition from banks. Blockrock isn't a bank and thus not a rival (so far). And almost all are customers of iShares or Blackrock products.

And iShares will continue to be an indirect retail banking partner, remaining outside the direct contact with banking clients.

With banks, fintechs and independent asset managers on board, the further market penetration by Blackrock in Switzerland seems unstoppable.