UPDATE 2-Vontobel net new money beats expectations, shares rise

* H1 net profit 78.8 mln Sfr vs 80.7 mln in poll

* Net new money 3.0 billion Sfr vs 1.3 bln in poll

* AuM 75.9 bln Sfr vs 74.5 bln in poll

* Shares up 2.7 pct, outperforming sector

(Adds CEO and analyst comments, shares)

By Jason Rhodes

ZURICH, Aug 11 (Reuters) - Vontobel AG's (VONN.S) first-half net profit rose 26 percent as it attracted more new client money than expected and demand for structured products and derivatives remained robust, the Swiss private bank said.

The mid-sized wealth manager, one of Switzerland's leading players in structured products -- complex, derivatives-based investments which often come with a capital guarantee -- reported net profit of 78.8 million Swiss francs ($74.76 million), against 80.7 million francs forecast by analysts in a Reuters poll.

Net new money, a key measure of a bank's competitive position, rose to 3.0 billion Swiss francs. Chief Executive Herbert Scheidt sounded an upbeat note on the start of the second half.

"We had a very good performance as regards net new money in both private banking and asset management in July," he said.

Vontobel's performance contrasts with that of Swiss peers EFG International (EFGN.S) and Sarasin (BSAN.S), which also attracted more client money in the first half but reported underwhelming earnings for the period.

"The Vontobel results are pleasing after the disappointments of Sarasin and EFG International," said Zuercher Kantonalbank analyst Andreas Venditti. "Net new money was massively above expectations."

Vontobel said it attracted onshore client money to its important German onshore market, suggesting a German tax investigation into bigger rival Credit Suisse (CSGN.VX) might not be damaging sentiment towards other Swiss banks. [ID:nLDE66F1HT]

The bank also won client money domestically after opening new Swiss branches and in central and eastern Europe, and some existing clients returned money to Vontobel that they repatriated in the crisis, Scheidt said.

VOLATILE MARKETS

Shares in family-controlled Vontobel traded 2.7 percent higher at 0838 GMT, against a 1.2 percent fall in the STOXX 600 European banking index..SX7P

The bank delivered a solid set of results, said Mathias Bueeler, an analyst at Swiss brokerage Kepler Capital Markets

"While the profit and loss account looks solid enough, there are positive surprises here and there, given a clear beat of net new money expectations," he said.

Assets under management (AuM) increased to 75.9 billion francs, ahead of expectations, as the strong client money gains more than offset falling share prices and foreign exchange losses arising from euro weakness.

The bank warned continued volatility in financial markets made it difficult to give a reliable outlook but confirmed its medium-term targets of 100 billion francs AuM by 2012 and net new money growth at least in line with the market.

Vontobel said in June it set up a new arm to serve wealthy U.S clients after failing to capitalise on client defections from top Swiss wealth manager UBS (UBSN.VX) (UBS.N) during that bank's damaging tax dispute with the U.S. government. [ID:nLDE6562B2] (Reporting by Jason Rhodes; Editing by Alex Lawler)