Ad hoc

VP Bank is acquiring a 3.4 per cent equity stake in Hywin after signing a Collaboration Agreement to strengthen the Strategic Partnership

29.03.2021 · Ad hoc announcement pursuant to Art. 53 LR

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VP Bank Ltd (Liechtenstein), Hywin Wealth Management Co., Ltd (China) and its subsidiary Hywin Asset Management (Hong Kong) Limited, among others, signed a Cooperation Agreement to jointly establish through Hywin's Hong Kong entity a collaboration platform to meet the demands of wealthy Chinese for sophisticated wealth management services offshore. The strategic nature of the partnership is further strengthened by VP Bank's participation in the equity fundraising activities of Hywin Holdings Ltd (“Hywin Holdco”).

Further to the signing of a Memorandum of Understanding announced on 11 July 2019, Hywin Wealth Management Co. Ltd, ("Hywin Wealth"), Hywin Asset Management (Hong Kong) Limited ("Hywin Hong Kong") and VP Bank Ltd ("VP Bank"), among others have signed a collaboration agreement, representing a significant next step for both organisations to progress their mutually beneficial strategic partnership. This was reported by VP Bank on 9 March 2021 during its annual results presentation.

"Asia represents a top priority in our Strategy 2026. The outstanding collaboration with Hywin and the participation in the equity fundraising activities of Hywin Holdco provide us with an excellent opportunity to successfully continue VP Bank Group's Asia momentum. Partnering with a highly professional and recognised partner such as Hywin Wealth Management is a true privilege. Combining our proven strength and experience in servicing financial intermediaries with the strengths of Hywin as a valued wealth manager for Chinese clients offers us attractive opportunities", outlines Paul H. Arni, CEO of VP Bank Group.

The strategic partnership encompasses products and services collaboration activities. In particular, Hywin Wealth and VP Bank will further deepen their cooperation in connection with the investment management and custody of client assets of Hywin Hong Kong and/or its affiliates, enabling the partnership to offer first-class international investment capabilities and services to Chinese investors, a market creating two billionaires every week*.

Another key element in the cooperation is VP Bank's acquisition of a 3.4 per cent stake in Hywin Holdco, representing the formalisation and long-term alignment of this strategic partnership. Hywin Holdco was listed on the NASDAQ Global Market Stock Exchange under the symbol “HYW” on 26 March 2021.

VP Bank will immediately benefit from access to Hywin Wealth's vast client base, accelerating its growth ambitions in Asia. In addition, Hywin Wealth through Hywin Hong Kong will be able to unlock VP Bank's offshore wealth management offering, a modern infrastructure and leverage its international ecosystem of partners and investment specialists. "We will now be able to follow and service our clients more closely in their international aspirations and accelerate our mission to become a wealth manager of the highest international standards", re-emphasises Ms. Wang Dian, CEO of Hywin Wealth.

"I am looking forward to further expanding our cooperation in the intermediary area. With Hywin Wealth Management, we are combining the best of both firms and can offer exclusive custody, investment and wealth management services for the fast-growing Chinese (Ultra) High Net Worth community abroad and leverage joint synergies at our Singapore and Hong Kong locations”, says Tobias Wehrli, Head of Intermediaries and Private Banking and member of VP Bank’s Group Executive Management.

* report by UBS and auditors PwC