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Analysts Approve Of Julius Baer IPO

02-20-2008 | Source: Fund Action

People & Companies in the News

After Julius Baer decided to sell its U.S asset management business last week through an initial public offering, analysts remain confident in the U.S. fund firm. They have little reason to suspect the move will disrupt the money manger’s strong performance and speculated on possible advantages after the I.P.O.

Gregg Wolper, analyst at Morningstar, said the I.P.O. route is better for Julius Baer than a sale to another fund shop because it suggests that fees and staff will not change. Wolper added that there is a potential benefit to the new structure in that Julius Baer will no longer be vying with other groups for a parent firm’s attention.

Bridgette Beardon, analyst at Financial Research Corporation, said the critical factor will be whether or not Julius Baer keeps its managers—and she predicted it will.

The new U.S. firm will be branded Artio Global Investors. Beardon said it was too early to say what a new brand would do for sales.

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