Julius Baer on Wednesday set the wheels in motion for the flotation of its US-based fund management business, initiating a complex process that will eventually split the Swiss group’s private banking activities and fund management into two companies.

The ensuing pure-play private bank is expected to take a significant role in sector consolidation, while the GAM fund management operation is widely forecast to be sold or merged into a bigger fund management group. Baer will update investors on September 25 on the prospects for its private bank and GAM.