(Bloomberg) -- Julius Baer Group Ltd. said net new money from clients amounted to less than 3 percent of managed assets in the first four months of the year, missing its target.

Clients in eastern Europe and Latin American showed “slow momentum,” while customers in Asia reduced borrowings and wealthy French and Italians repatriated money for tax declarations, the Zurich-based company said in a statement on Thursday.

Julius Baer said it can still reach its full-year target of a 4 percent to 6 percent increase in net new money.

The bank growing by making acquisitions to compensate for lackluster organic growth, as it chases the growth of wealth managers several times its size such as UBS Group AG. The company paid $547 million to resolve a U.S. tax probe in February, erasing most of last year’s profit, and has said it needs to invest several hundred million dollars to upgrade its information-technology platform.

Client assets under management increased to 305 billion Swiss francs ($309 billion) in the first four months of the year, from 300 billion francs at the end of December, according to the statement. The increase includes about 9 billion francs at Kairos Investment Management SpA after Julius Baer increased its stake in the Italian asset manager to 80 percent in April.

To contact the reporter on this story: Giles Broom in Geneva at To contact the editors responsible for this story: Neil Callanan at, Ross Larsen, Elisa Martinuzzi

©2016 Bloomberg L.P.