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Ruvercap: Graubünden KB captain Fanconi threatens

Peter Fanconi has been President of the Graubündner Kantonalbank since 2014. The ex-Vontobel man has recently also been at the top of the EFG, just like Blue Orchard, which wants to invest sustainably.

Fanconi, 52, is one of the country’s financial elites. Now Graubünden is facing its biggest test to date. His cantonal bank has invested 70 million around Ruvercap.

The idea is to achieve good returns through investments in private debt in times of zero interest rates. Fanconis GKB did this on a large scale, via Ruvercap funds and its own vehicles.

The bank announced on Wednesday that it would immediately part with a member of the board of directors, which corresponds to the board of directors.

The man was associated with Ruvercap: he is the chairman of the board of a Ruvercap partner company. He chaired the Audit and Risk Committee on GKB’s Bank Council.

The GKB and its President Fanconi react nervously to questions. The external communications consultant writes as an introduction to the answers:

“Please send us the specific allegations / criticisms before publication and use of our answers so that we can comment on them. Your questions do not contain specific allegations. “

“Please note that GKB will not tolerate speculation or claims about any relationship or connection to Ruvercap and will take action against it.”

“Please briefly inform me about how to proceed. Thank you for your understanding and your journalistic fairness. “

The questions had gone to the GKB on Wednesday, and there was also a telephone call to clarify why the topic was important, namely: How careful was the GKB around Ruvercap?

Specifically, the question was asked why GKB had “invested around CHF 70 million in securitisations related to Ruvercap”.

On behalf of the cantonal bank, the external communications man said: “GKB only used private debt in asset management, as an addition to broadly diversified portfolios.”

The next question was how much of it is at risk. The answer: “Since the majority of the positions are, according to the current assessment, unchanged in value, GKB does not participate in public speculation about the value.”

And further: “Last year the GKB made a course correction of 10% in this position. A final assessment will only be possible in a few weeks’ time when the new investment manager’s comprehensive analysis is available. ”

The Ruvercap case became acute a year ago when there were problems with partners. These bundled loans to SMEs so that investors could subscribe via ruvercap bonds.

At the latest in summer 2019 it was clear what had hit. Three ruvercap funds had to be closed because no more repayments could be made to investors. The assets in the funds could not be liquidated quickly.

Months have passed since then and there have been external investigations and long reports. Nevertheless, the GKB takes the view that it will take more time before it is clear how large any losses could be.

GKB initially set up its own private debt vehicles, in which it then invested customer money in the millions. These vehicles also had ruvercap systems as assets.

The bank added: “In addition to the fund, GKB has invested in factoring facilities via tracker certificates. The underlying assets are the same as in the fund. ”

“Investors benefit from this structure because it is cheaper and more tradable.”

Then the external spokesman says: “Immediately after the potential problems with one of the underlying assets became known, GKB stopped trading officially, examined the situation and decided to gradually dismantle the product.”

Now the GKB could sue. “The goal was and is to protect customer interests. Any legal steps are not excluded. “

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