I find it rather interesting that dividend income from trading portfolios (CHF 180m, 121.9) and net trading losses on equity instruments (CHF 126m ; CHF 104m) only happen during the swiss dividend paying season. The profit margin between the dividend income on trading portfolios and the equity losses on trading are 15-30%. As a sidenote: withholding tax is 35%. Also: Dividends in Switzerland are mainly in H1. The dividend trading income and realised trading losses seem to be related to the swiss dividend paying cycle. If Julius Baer was doing trading with US equities for dividends they would be more evenely distributed throughout the year. However H2 never seems to have large fluctuations.
This could lead to a suspicous mind concluding that tax circumenventing in some form or other is taking place. Likely it is legal of course…
The official explanation (and one that makes a lot of sense):
The dividends come from equity securities that are held as a hedge in conjunction with structured products.
This would also mean that most or all of the negative net trading income from equity instruments is in fact just marked to market securities held for trading.
It does show you that the structured products division of Julius Baer is rather important.
Check out „Dividend income on trading portfolios“