Vontobel Holding AG

Ladies and gentlemen, welcome to the presentation of Fontobel's half-year 2026 results webcast. I am Matilde, the course call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Georg Schubiger. Please go ahead.

Good morning from Zurich and a very warm welcome from Christel, Jan and myself. Thank you for joining us for our half-year 2026 call. We are pleased to report an excellent first half. We achieved record financial results and strong strategic progress. Christel and I will give you the highlights. Jan will then take you through the financials. After that we look forward to opening the line and taking your questions. We had an excellent start to the year. We achieved a record net profit of 216 million Swiss francs Up 87%. Assets under management reached an all-time high of 252 billion Swiss francs. We are delivering ahead of all our through-the-cycle financial targets. We maintain the strong, liquid and well-capitalized balance sheet. Our fast capital generation gives us flexibility to continue to scale our business and invest for growth. The strategic progress behind these results is equally important. We strengthened our investment platform by embedding quantitative and AI capabilities more broadly across investment solutions. In line with our strategy, we expanded our solutions offering to address growing client demands for more tailored outcomes. At the same time, the efficiency program is no longer just a program. We are making targeted expansions in our focus markets in private clients. In Los Angeles, we are tapping into one of the largest and most sophisticated wealth pools in the U.S., In Wisseldorf, we are strengthening our presence in one of Germany's most attractive regions for high net worth clients and family offices. This is designed to scale a proven model and support our next phase of profitable growth. Taken together, this first half shows both the strength of our franchise today and the potential of our business model as we continue to execute this discipline. Let me briefly recap the backdrop against which we delivered these results. Markets were constructive overall, but conditions remained complex and volatile. In addition, visibility on the political landscape and its economic implications was lower than in previous periods. The escalation in the Middle East created a sharp energy shock in the first quarter. By the second quarter, markets increasingly looked through the geopolitical quagmire and refocused on earnings and growth. Investors' focus remained highly concentrated on technology, especially companies linked to AI infrastructure and semiconductor supply chains. Equities were positive over the first half. Bonds were more challenged by persistent inflation concerns and a higher for longer rate outlook. Currency headwinds continued to impact us, especially the strong Swiss franc and weaker US dollar. In this environment, clients needed analysis, guidance and flexibility. This is exactly where Fontobel has value, through active management, trusted advice and custom solutions. We are an active investment firm serving two client segments, private clients and institutional clients. These are mutually reinforcing in skills and business and complementary in their diversification benefits. Both segments draw on our dedicated experts and our single investment factory, Investment Solutions, which also includes our structured product capabilities. The relevance of our unique model is increasing. Markets are harder to navigate and clients are demanding more tailored advice and solutions. A generational wealth transfer is reshaping client needs across private and wealth. Fontobel is well-placed to benefit as we combine investment expertise and customization in one integrated setup. Our priorities are simple because our model is clear. We help clients navigate complexity through advice, active management and customization. We grew in markets and client segments where we have a clear right to win. And we operate with discipline so that revenue growth flows through to profitability. The first half shows that this model is working. Stronger client activity, record profitability, and a clear operating leverage. Investment Solutions is at the core of Ontobel. We have flagship strategies across all major asset classes and distinctive structuring capabilities. We are also expanding private markets, including the next Ankala Fund and the first fund in 24 asset management. Fontobel Solutions builds on that foundation. The new unit within Investment Solutions is designed to connect and combine these capabilities, to systematically turn them into scalable, tailored outcomes for clients. There is clear client demand. Markets are more concentrated, correlations have been shifting and macroeconomic and geopolitical drivers are harder to predict. More than before, clients are looking for solutions built around their own goals and constraints. They want portfolios designed for the outcome they need, not off-the-shelf products. This is where Fontobel can win. We have the building blocks. Investment expertise, quantitative tools, portfolio construction, risk management and structuring capabilities. We already know how to assemble them at scale, drawing on the systems and approach we already apply in private clients. We are now scaling it more systematically for institutional clients. For clients, Fontobel Solutions brings tailored portfolios to precise investment needs. For us, it provides access to an attractive and growing market that plays to our unique strengths with a clear strategic fit. And now over to you, Christel.

Thank you, Georg. Let me start with institutional clients where we see positive commercial momentum. We have executed our institutional client strategy with discipline. The focus has been clear. Sharpen our coverage, improve client experiences, and ensure our best capabilities reach the clients and markets where demand is strongest. That is now reflected in how we operate. We holistically engage clients around the problems they need to solve, Bringing the relevance on Tobol capabilities into that conversation. We work more closely with our clients, combining global reach with selective, strong local coverage. Our client processes are more efficient and faster, that is, more consistently converting demand into mandates and flows. Indeed, results are clear. In the first half, we saw improved flows, margins and revenues. Reporters met new money growth with minus 1.5%, reflecting the known effects from Raiffeisen and quality growth. However, the underlying picture is much stronger. Excluding these two known effects, growth was 7.4%, well above our through-the-cycle target. This shows that the underlying business is growing with solid momentum. This is particularly clear in fixed income, where we achieved annualized net new money growth of 15%. Strong client demand and a healthy product pipeline position us well for this second half. Taken together, institutional clients is becoming sharper and ready to scale again, converting invested demand into profitable growth. Turning to private clients where we delivered strong growth and continued to expand in our focused markets. Revenues grew by 32% and assets under management stood at an all-time high of 132 billion Swiss francs by half-year. The result was driven by strong client activity and demand across our offering, specifically advisory and discretionary mandates, as well as structured solutions. We attracted 2.5 billion Swiss francs of net new money. This represents 4.1% annualized growth within our through-the-cycle target range of 4-6%. Importantly, inflows were positive across all regions. This confirms the strength of our investment-led approach and of our focused market strategy. We win clients with investment expertise. Not through balance sheet credit. More than 90% of our assets are in developed and western markets. We selectively hire and develop top-caliber relationship managers who can grow with our investment-led approach. We are strengthening the foundations for future growth by expanding in focused markets where we see clear client demands. In Los Angeles, we opened our first West Coast office in one of the largest wealth markets in the United States. Through Fontobel Swiss Financial Advisors, we can serve the demand for international diversification. We give clients access to global portfolios and Swiss custody fully within the US regulatory framework. In Germany, we will open our Dusseldorf branch in North Rhine-Westphalia One of the country's most important economic regions. We will serve individuals, family offices, entrepreneurs by offering diversification and our unique investment expertise. In sum, Private Clients continues to deliver recurring, high-quality growth at conservative risk levels. We are excited to continue scaling this business. Let me now turn to costs. The efficiency program is delivering beyond its original target. We will complete the program by year-end and realize further efficiencies as the remaining measures are implemented. I want to emphasize that we do not view this as a short-term cost exercise. The program was always about structurally improving our efficiency and embedding stronger cost discipline across the organization. Our structurally lower cost base and stronger cost discipline are already clearly visible in our results. On an adjusted basis, our cost-income ratio improved to 66% in the first half. That is 12 percentage points lower than three years ago and significantly better than our through-the-cycle target of 72%. We achieve this while at the same time continuing to invest for growth. Our objective is to grow with scale. That scalability is what creates operating leverage. Higher revenues will therefore in the future translate into higher profitability. Let me close this section with our targets. In the first half of this year, we operated ahead of all our through-the-cycle targets. Our capital position also remains strong, giving us the flexibility to continue scaling the business. This is an excellent first half performance. It gives an indication of the potential of our differentiated, unique business model as we continue to execute our strategy with discipline. And with this, let me hand over to Jan to cover the financials.

Thank you Christel. Good morning everyone. I am very pleased to report that the strong strategic progress set out by Christel and Georg is clearly visible in our financial results. We delivered record profits Clear Operating Leverage and further strengthens our balance sheet and capital position. Looking at the chart, on the far right you can see that profit before taxes reached $273 million, up 84% year-on-year. Net profit reached $216 million, up a remarkable 87%. The main driver was strong revenue momentum. with revenues up 191 million. Of course, stronger performance means that we must accrue for variable compensation. But importantly, cost excluding variable compensation declined. This clearly shows the positive effects of our efficiency program and the scalability of Fontobel's business model. These results were delivered despite continued foreign exchange headwinds. We saw a higher average US dollar exchange rate than comparing the first half of 2025 with the first half of 2026. As a result, dollar revenues we earned translated into fewer Swiss francs. Without that effect, profit before tax would have been around 30 million francs higher. Let me walk you through the main drivers behind these record results, starting with assets under management. Assets under management reached an all-time high of 252 billion, up 5% from year end. The increase was supported by positive net new money, market performance and foreign exchange effects. Over on the far right of this slide, Private clients contributed 2.5 billion of net e-money equal to 4.1% analyzed growth. This is within our target range. Inflows were positive across all regions with strong demand for advisory and discretionary mandates. This growth was investment-led and not driven by lending. In fact, lending balances declined slightly which underlines the quality of the inflows and the continued relevance of our investment-led model. In institutional clients, reported flows were reduced by two known effects. The insourcing of the Futura funds by Raiffeisen until July 2027 and continued outflows from our quality growth boutique due to the current market trends that do not suit its distinct and defensive investment style. Excluding these effects, the underlying picture is very strong with a net new money growth rate above our target range. Not on this slide, but I would like to mention that in fixed income, our boutiques achieved an impressive 15% analyzed net new money growth. Over both businesses, PC and IC, adjusted net new money for the group was 6.3 billion Equalling the growth rate of 5.9%, which is at the upper end of our through the cycle target. That brings me to revenues. Operating income reached 852 million, up 24% year on year, or 29% in constant currency. We saw higher income across all major revenue categories. Net interest income increased despite the low rate environment. This was because the deposit mix shifted toward lower cost funding. Net fee and commission income benefited from the higher asset levels and better margins. Trading and other income reflected strong client activity and structured solutions which achieved a record half year. Demand was exceptionally strong in the first quarter and remained strong in the second quarter. Fontobel's broad product offering and our ability to issue products swiftly allowed us to capture client demand across changing market themes. Other income included an 8 million gain from the divestment of COSMO funding announced in February. By client units, private clients' revenue grew strongly, supported by structured solutions activity and higher asset benefits. Institutional clients' revenues also grew, supported by higher margins and asset levels. Let me now turn to margins. In institutional clients, the margin improved to 35 basis points. This was supported by success in higher margin areas, including fixed income. In private clients, the margin increased to 104 basis points. This was primarily driven by strong demand for structured solutions. The recurring fee margin in PC reflected two offsetting effects. Our success in the ultra-high network segment has put some pressure on the recurring margin as larger clients typically deliver a somewhat lower margin. But strict revenue management has almost offset this. Moving to costs. This slide shows the operating leverage in our results. As mentioned before, operating income increased by 24%, but operating expenses increased by only 7%. And the increase in expenses was driven by higher variable compensation linked to the stronger performance. Crucially, cost excluding variable compensation actually declined. This is an important point. It shows that the structural cost base continues to improve and our business model scales effectively. I am very happy that our efficiency program is bearing fruit. It has now reached 116 million of cumulative exit rate savings, well ahead of our original 100 million target. As a result, The cost-income ratio improved significantly, falling a full 10 percentage points to 67.9%. Adjusted for cost to achieve and M1A-related items, it was 66.4%. Both numbers are well ahead of our through-the-cycle target of 72%. Let me now shift from performance to resilience. Frontobel continues to operate with a strong, liquid and conservatively managed balance sheet. Total assets increased to 38.3 billion. This was mainly due to higher client activity and seasonally higher settlement balances. Our balance sheet remains fully mark-to-market and supported by a high level of liquid assets. Earlier this year, I was pleased about the issuance of a further 250 million senior unsecured bonds, which was met with high investor demands. This built on the success of last year's first issuance and continued to diversify our funding base. We also maintained a very comfortable liquidity and funding position with a liquidity coverage ratio of 148%. As a truly investment-led and not credit-led firm, we view lending only as an offering to support client relationship in very strictly defined areas. The lending book therefore remains deliberately conservative and modest compared to peers. It comprises 2.2 billion of SIS mortgages and 5.6 billion of Lombard loans. Structured solutions continues to be managed with tight risk controls, supported by careful treasury and liquidity management. This disciplined approach is also reflected in its long-term crack record with the business having operated profitably for every year for more than 20 years. Our strong balance sheet is matched by a very strong capital position. The CET1 ratio increased to 23.2% and the total capital ratio reached 28.1%. CAT1 capital increased to 1.5 billion, while risk-rated assets declined slightly to 6.5 billion. This mainly reflected lower exposures from hedging positions linked to client-driven structured solutions. At 23.2%, our CAT1 ratio is well above our 12% internal target. This reflects the strong capital generation and capital efficiency of our business model. This surplus offers us strategic flexibility. It gives us the capacity to fund organic growth, acquire the remaining Ankala stake over time, and absorb potential regulatory impacts. It also gives us options to pursue inorganic growth opportunities, such as acquisitions with a strong strategic fit. Let me now turn to value creation. This is where the financial performance translates into shareholder value. The key point is the capital efficiency of our business model. We can grow without significant capital consumption. That allows earnings to translate into tangible equity growth while still supporting our attractive payout ratio target of 50%. Tentable book value per share increased by 8% in the first half of the year. And this is not just a first half effect. Since 2014, tangible book value per share, including cumulative dividends, has grown by 227%. Our return on equity was 16.9%. clearly above the estimated cost of equity of 8.5%. And again, this is not a one-off result. For more than a decade, we have operated above our estimated cost of equity. Put differently, Fontobel has consistently generated shareholder value in every single year. Let me close the financial section by bringing the key points together. We delivered record profitability. We operated above our through-the-cycle targets. We achieved an all-time high assets under management. Margins increased in both client units. Our efficiency program is visibly improving our structural cost base and is helping making our business model scale effectively. This translated into clear operating leverage and a cost-income ratio of 67.9%. Our balance sheet remained strong and liquid, and our CT1 ratio increased further to 23.2%, well above our internal target. Finally, these results translated into shareholder value. Tangible book value per share increased to 36.5 CHF per share, up 8% in the first half. Taken together, these results indicate the potential of our business model, the clear results of our discipline execution and the strategic progress we are making. With that, I hand back to you, Christel.

Thank you, Jan. Georg and I would actually like to take this opportunity to officially thank you, Jan, for your outstanding leadership and commitment as interim CFO over the past month. You successfully guided the finance function with dedication during this period. So thank you very much and we look forward to continuing working closely with you going forward. To recap and conclude this call, we delivered an excellent first half of 2026 with record financial results, a strong balance sheet and capital position, and clear progress across our strategic priorities. Our unique integrated model remains a strength and differentiator for Fontobel. The results we report today Thank you for joining us today. We are now happy to take your questions. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone.

You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from a question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Anyone who has a question may press star and 1 at this time. The first question comes from the line of Karol Brodinski from Octavian. Please go ahead.

Good morning, thank you for taking my questions. I have three, if I may. So, first one is around the Raiffeisen Futura assets. So, if I'm correct, the outflow in the first half of the year was associated with Raiffeisen Futura was 4.6 billions. The total was, if I recall, 13 billion. So could you maybe share some insights in terms of the timing of this outflow? So it will stop at mid-2027, but how much should we expect for this year and how much should we expect for the first half of 2027? And then the second question, more general, So, 47% of your clients are domiciled in Switzerland, right, as a whole. And if you could maybe share some information what does this split look like between the two segments. I particularly am interested in this split by domicile in institutional clients division. And the third one is, if you may share some Thank you for your insights into what the structured products look like in the second half of the year. Thank you.

All right. Shall I start with your first question, Karel? Maybe to put this into perspective because I don't think it's 100% correct. We have reported net new money flows in our financial statements in IC of minus 0.8. And for the presentation, we add there the flows of institutional nature, which were plus 0.8. So it's the flat which you have been seeing in our presentation or in my part. Now in terms of these two known effects and how they are quantified, so actually there's 1.3 billion of outflows for Raiffeisen Futura, which we observed in the first half, not 4.6, so 1.3. An asset base of around 12 billion, which is left, so just 10% of it. From the timeline perspective, you are right, this is going to be handed over fully by July 27, so then obviously by then all of these assets will be gone and we will obviously also report like how much that is. I would think that the most of it will go out in 27, but that depends a bit on the decisions made by Raiffeisen. May I also then jump to your third question, the structure of Yeah, okay. The structure of products. So, I mean, obviously the macro environment which we have observed is actually very positive. But also we have to see that from the way this business is set up, so it's a very scalable, fully digitized platform, very good distribution channels and and the ability to swiftly issue products that also helps us to capture these flows. And we have a very good market position in our main two markets here in Switzerland and Germany. So while there's obviously always an uncertainty about the prediction of the macro environment, we believe that the business itself is very sound and also over the last couple of years developed positively. And we think that this may continue.

I think first it's very important to be aware that we have a much higher share of Swiss domiciled clients as many of our competitors and we believe that it's actually an asset because many risks associated with other markets, especially emerging markets, are simply not present here. It gives a lot of stability. Secondly, I think it's important to differentiate between the private client business and the Institutional Business. While we don't give a breakdown in assets, we do say that on the private client side, we are much more oriented towards Western and developed countries, so that several European countries that are our focus countries, that's the United States with Canada, very selective Latin American countries and South Africa. Whereas on the institutional side we are truly global. In the institutional side we also cover Asia, we cover Japan, we even cover Australia. But that has a lot to do with the risk appetite, with the risk involved in the business that are simply different.

Thank you very much.

The next question comes from the line of Nicolas Herrmann from Citi. Please go ahead.

Yes, morning guys. Hopefully you can hear me okay. I know that in the past you have struggled sometimes. I just want to check if you can hear me first. Hello?

We can hear you loud and clear.

Super, thank you. Read from me please, as well. So, firstly, On the dividend, can I just ask why are you accruing at a payout of 40%? If you could just remind us the dividend policy there. Secondly, you've got $700 million of surplus capital. You have outlined some capital needs. So could you just help us understand how much is true surplus? and it sounds like M&A is finally back on the table. So if you could help us understand what are you looking at? And then the final one is on equities in institutional clients. It looks like the equities AUM has fallen year to date despite super strong markets outside of the two and a half billion of quality growth outflows. Am I correct that there was still Thank you for your questions.

I may take the first two ones. So on dividend policy, we are committed to our through the cycle target of dividending out at least 50% of our profits and obviously the actual dividend is being set by the annual general meeting after the full year has closed and we have seen the entire result so then we can discuss this further on your second question on the capital needs so yes I mean of course you can say maybe you did that the difference between the 23.2% I think for the capital which we have there, we need it for the Ankala acquisition which is to close the remaining stakes we acquire in the next couple of years. That depends also on how Ankala develops. So the better it develops, the higher the price will be for that. That's uncertain at the moment. Secondly, we are As you have seen, our business is growing nicely and although many of our positions are hedged and we are balance sheet live, we still need certain capital to fund and support this organic growth. Then we have the discussion currently in Switzerland about certain regulatory measures. which are mainly targeted against or at UBS but also may influence us. We believe that these rules come into force in 2028 so that's also a bit of an uncertainty we currently have. In terms of M&A as in the past we are looking selectively at targets which bring us either scale or skills which we need for business. but there are no concrete ones which we can talk about at the moment.

To equities, you are right that we had outflows. They are, however, linked to quality growth and high prices. So outside of these, the equity franchises actually did grow. So you have, you know, MTX on EM, you have Impact and Thematic and you have the Swiss equity business which was broadly flat. The other two actually So, yes, linked to the two themes that we have specifically mentioned.

That's helpful, thank you. If I could just return to the M&A point. You have addressed one of the areas of white space for you, which was private markets. So, where do you see gaps in capabilities? and it all is the preference to increase scale on the private client side. Thank you.

We've said that both are interesting for us, scale on the private client side within our focus market and skills where they are complementary so that doesn't mean that you necessarily have a completely different space but you can have additional skills bolt on around an area where You actually build around an existing boutique or bring complementary skills. So that is more the way we're thinking about it. But there's no obvious white spot as you are mentioning. But both remain interesting, the skill and the skills.

Very helpful. Thank you. I might circle back a bit later because I have a couple more, but nothing helpful. Thank you.

We now have a question from the line of maintenance from UBS. Please go ahead.

Good morning, and thanks for taking my questions. I have three of them, please. The first one would be on costs. It appears you are well underway with the cost-efficiency exercise, and I'm wondering what is the expectation from here, given you've already achieved 160 million gross exit savings. Do you expect the demand to rise further from here? Any indication on the magnitude would be helpful. The second question is on structured solutions. The revenues doubled year on year, and they're up more than 40% from the second half of last year. Could you talk about the drivers of such a strong performance that also appears to be substantially stronger than what we're seeing from a sector peer? Has anything changed in the business, structurally or tactically? Has the outperforming mainly come from the bond side? And also, if you could put this into the context of market risk, RWA is essentially flat at year-end levels. And the third question would be the flow outlook in institutional clients. It sounds like 24 and fixed income boutique are generating Thank you. Okay, let me go ahead with the first question. I think then Georg and Christel will do the other ones. So, in terms of expectation,

First of all, I would say that a cost efficiency exercise never ends, right? So it's always important that you keep costs under control and this is obviously something which needs and is embedded now in our cost culture. Now with respect to the specific efficiency program, you're right, so on the one hand side we realize these 116 million of cumulative exit rates The cost to achieve which we have that obviously is something which directly falls away next year.

On the structured solution, it's a combination, obviously, of markets and skills. The markets are structurally favorable. By that, I mean in particular, you know, the sort of air pockets that you see constantly around the trend that's actually positive. The skills, we very clearly have them. That is demonstrated in the pole position that we have in several of our markets, but also in the heat ratios that we see now. It's hard to speak versus competitors. You will have as much transparency as we do. The success is your ability to quote and the diversification and underlines that you have. So we are very fast to market in bringing new underlines. What we can tell you is that in the first half, it was in particular on U.S. equities and commodities that we saw a lot of demand. We think that our edge is there to stay. Very clearly, which are the skills, the time to market, the diversification in products and in distribution, as is the type risk management that we have always had for this business, which brings me to the RWA, is a reflection of that type management, but Jan, maybe you want to add something there?

Yes, an RWA, I mean, despite the higher volumes which we have, you can really see that the RWA didn't move so much which is actually, as you say, a reflection of our type of management.

And on flows, our target is 4-6% over the cycle and that will remain our target. We don't give any forecasts. I think what is known is right price and we just discussed it before. And for the rest, of course, you know, demand varies. There are cycles. It's based on preference for asset classes and styles. But nevertheless, we think we're very well positioned here to move forward and develop the business given the broad variety of products and very well performing products that we're having.

Thank you. That's very helpful. If I just make one more follow-up on RWAs. It looks like your credit risk RWA actually declined in the first half. Is that simply driven by the lower lending balances that I can see on the balance sheet, or is there any potential further hedging or capital optimization there?

Thank you. So on the credit, RWA, you are right. I think this is partly due to the slightly lower lending balances. Also, it depends on the mix of collateral which we have for these lending mortgages, but also More on the Lombard side, what the mixes of the assets which we have there. But then also one thing to mention here is that FINMA requires that we show crypto-related RWAs under credit RWAs. and these are products which are also managed by Structured Solutions. That's what we mean by that. As you know, crypto currently is not being sought after a lot. So that was one of the reasons why this went down. Very helpful. Thank you.

As a reminder, if you wish to register for a question, please press star and one on your telephone. The next question comes from the line of Daniel Regli from Zürcher Kantonalbank. Please go ahead.

Yes, good morning. Thank you for having me for questions and first congratulations to the good set of results. I have four questions if I may. First is again on the flows. In institutional clients and their thanks for the transparency on the flows from Raiffeisen and quality growth. But as you have done for the Raiffeisen part, could you also give us a bit of a feeling how much A1 is left in the quality growth to keep and what is your expectations regarding future outflows from quality growth? How far will this go? Then the second question is about margins. Can you talk a bit about the margins on these two products, quality growth and rise-risen? Then the third question is on flows in wealth management. Obviously, wealth management in flows has been relatively stable and solid. but still they are at around the lower bound of the 46% target range so is your expectation there that you will be able to improve this towards more the center of the range or is this kind of the going concern assumption on these levels as you have seen now and then last but not least this is probably the most tricky question and I think we all and maybe also a bit of a follow-up to other questions from colleagues We all wonder how much of the success in structured solutions is sustainable. We all know it's kind of a volatile business, but you still kind of beat my estimates at least in structured solutions for a couple of half years in a row now. Can you give me any kind of indication about what your expectations are in terms of revenues in H2 from Structured Solutions or maybe ask differently what share of the kind of more than 100 million revenue increase is driven by the Thank you.

So on the flows on IC, quality growth specifically, we won't give further breakdown than what you see. You have already a lot in the sense with the percentage as well as what you can see on the funds out there which are all public and listed. Of course, there's a difference between just the funds and the mandates that might be had, but that is as much as we disclose. In terms of the margin, Raiffeisen is much lower than our average margin, which is customary for a client of that size. So our outflows are outflows, but they are margin accretive, and it also fits with what we had declared, which was by 2027, a marginal impact on our net profitability. Quality growth, you'd assume in a sense, so what was higher margin was the emerging market business, which was the leading business 10 years ago for actually the firm as a whole and is now negligible. The rest of the business, equities tend to be higher, but mandates tend to be lower, so you can count it around Thank you very much. I guess what you're seeing is a right analysis that the trend, the cyclicality of the market of course is always there for this business as it is for other business by the way but the trend for us is indeed upward sloped and that is a function we believe of the competitive landscape and our own skills and that for us is a sustainable Thank you very much. Thank you.

We are protecting our reputation, we are protecting our risk position when it comes to private clients and hence we have to be very selective with relationship managers that we hire. So that's a very important thing. The second thing also remember, if you compare it to competitors, they're literally not present in Asia and the Middle East, which has been a big driver of many competitors growth and also that is by design. The target stands 4-6%. That's where we want to be every half years. Of course, great if you're above. Now we're at 4.1% and we're very satisfied with the result.

Okay, thank you so much.

We have a follow-up question from the line of Sanikola Seaman from Citi. Please go ahead.

Yes, thank you. I have one follow-up and two additional questions, please. As a follow-up on structured solutions, what was the volume of structured solutions in US equities in this period, and how does that compare to normal? That would be interesting. And then the other two I had, please, was firstly on solutions. You outlined that as a clear strategic priority a couple of years ago. Why are you only creating a standalone unit now, and then clearly sustainable extra-security income plus has been a success but beyond that could you talk about the growth of your solutions offering over the past couple of years and then the final one is on Ancala. Have you had a first close yet on the new fund? And I guess I'm interested to know what volume of capital do you expect to raise from Bontobel's broad institutional and wealth client base? Yeah, that would be interesting. Thank you.

Let's start from the last one. No, Ankara hasn't had a first close yet. It's for the end of the year. They started raising... at the half year pretty much, so looking to close by the end of the year. We're not going to comment specifically on what's going to come from them and then from us. Obviously, the success of the business means that they have a lot of repeat clients, which you do want to have in that business. It really is the cornerstone of a private market business and given the performance of the previous funds, given the successful exits that they've done, for their funds over the last few months. We definitely expect that they will have a lot of repeat customer. And similarly, we do see interest from our own customer base for clients that they were not necessarily covering themselves yet. And I'm thinking specifically about Switzerland there, which was for them an under-covered market. On the solutions, yes, it's been actually, I'd say we put it forward really in our strategic priorities. Two years ago when we gave those priorities, or a little less than two years ago, it's because we set it up, we had really, it was making it happen in a smooth, seamless fashion at the right time as well, and we made it happen at the same time. as the integration of our quantitative skills. A lot around solution is bringing together leading capabilities, which in product term you would say leading product, but it's not so much about the product, it's about the building block, the capabilities, and how do you orchestrate them for clients to meet the specific needs. And that is a lot also about how you assemble from a quantitative risk construction, et cetera, perspective. So this is why the creation now. on the structures and the other we have we've had obviously quite quite a bit of demand specific mandates you know to a large extent the Auckland Future Reserve Fund mandates that we won is very much in the spirit of that it is a multi-asset mandates but it's also highly customized and this is exactly the type of conversation we want to be having without lines what do you need can we need them With what team do we need to assemble at our end, yes or no? And the assembling could also be, by the way, with our structured solutions guys as well, and that is definitely a strong edge for us. The volume on U.S. equities, I'm looking at Jan, we don't have, I think, the specifics on that, but...

I just would like to also point out that... I think the real benefit of our franchise is that we can very quickly react on product, you know, on underlyings and demand from that. So if it was silver at the year end and now it's U.S. equities, it really is important that we can capture these flows and these different likes and risk profiles our clients are seeking and that's what we do.

That's helpful, thank you. It's pretty to follow up on Ankala. Is the 2 billion target in line with your business case for when you acquired the business? I guess I would have expected a little bit more given the potential for cross-sell. Thank you.

Well, I think that is for the fourth fund of Ankala, the first one once we have this minority stake acquired, and that's part of the business case in that price.

Thank you very much.

We now have a question from the line of Anna Lifedor from Citi. Please go ahead.

Good morning. Can you hear me?

Good morning.

Oh, good. Thank you for taking my question. I just have one, if I may. So on emerging markets has been very strong year to date, and I'm just wondering at a high level, Could you give us a sense for how much institutional allocations to EM have increased this year? And for Vontobel specifically, how is the pipeline looking and where do you think this allocation could go to? Thank you.

So we indicated about actually last year that we thought we had reached the bottom in terms of EM shares of assets for us in the book which was linked both to what was happening to quality growth EM franchise and that was performance driven but most importantly due to the demand or lack thereof from clients and that we were expecting demand to return from fixed income first so that has completely panned out basically we've seen a lot of demand on the EM debt side but we also see demand on the EM equities and I mentioned before you know that amongst the franchises that are growing for us. Our MTX, which is an emerging equity franchise, is also growing. So clients are returning to the asset class, yes.

Thank you. That's very clear.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Georg Schubiger for any closing remarks.

Thank you all for joining us today and for your questions. We appreciate your continued interest in Fontobel. Should you have any additional questions, please do not hesitate to reach out to our investor relations team. We look forward to updating you on our progress with our trading update in October. Until then, we wish you a successful day, relaxing holidays and a pleasant summer. Thank you and goodbye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Coruscall and thank you for participating in the conference. You may now disconnect your lines. Goodbye.