Taking an ‘old-school’ approach to asset management, but in the positive sense of the term, is what CPB Quilvest wants to achieve. The niche asset manager based in Luxembourg and with a branch office in Belgium wants to continue to build on its strengths via a horizontal and open structure. Organic growth is paramount and open architecture is one of the pillars of the business model.
This is evident from an exclusive interview that Investment Officer had with Xavier Rubbens (photo), the director of the Belgian office of CPB Quilvest.
CBP Quilvest is the successor to the Compagnie de Banque Privée (CBP), which was established in Luxembourg in 2007.
This Luxembourg bank focuses on private banking activities and is guided by decades-long Luxembourg traditions. From the outset, it has stood out for its comprehensive approach to wealth management. It offers not only portfolio management, but also structured products and asset structuring advice.
Rubbens has had a rich career of 37 years in the financial sector and has seen many developments. He has seen two major changes during his career: the rise of collective investment funds on the one hand and European regulation on the other. According to him, the European directive has ensured that investment funds have become fully-fledged investment products.
Business model
CPB Quilvest’s business model is based on a horizontal structure, in which the best funds and investment products are chosen for clients.
‘We do not own any funds or certificates ourselves and rely entirely on open architecture, said Rubbens.”We also let our clients invest in pure share classes with the lowest costs.”
Quilvest is also loyal to asset managers that were identified early on and continue to perform excellently, such as FundSmith and Pictet.
“The asset allocation we do relies on tried and tested recipes and is not sexy,” explained Rubbens. “We have an old-school approach, and I take that as a compliment.”
“I have a lot of respect for the Delen model,” he continued, “which has led to the rise of more standardised management through some profile funds, but we fill portfolios in a more personalised way.”
Rubbens uses the image of Foucault’s pendulum: and is convinced that at some point the sector will swing back towards their model. That pendulum has now swung too far in the other direction, he said he believes: “Some players in the midfield have disappeared through mergers and acquisitions, and their employees who had been working that way for 25 years are now coming to us because they feel good about that personalised way of working.”
Discretionary management at CPB Quilvest is remunerated by an all-inclusive management fee. There is no segmentation of clientele, according to the firm. An average client has between EUR 700,000 and EUR 1.2 million under management. With managed assets of about EUR 1 billion, this means about 1,100 accounts.
“We are very discreet and we don’t do any publicity,” said Rubbens. “We don’t sponsor any events either.” He explained that his company prefers to invest that in our clients. It also does not want to impose a formal entry threshold on its clients, unlike many private bankers. “What is important is that we appeal to the entire family of our clients, from the children to the grandchildren,” says Rubbens.
Structuring
Rubbens states that half of the time of the relationship managers at CPB Quilvest goes into structuring the assets: “Belgian legislation has all the tools available to prevent people from paying the highest rate of 27 or 30 percent in inheritance tax,” he said. “Thanks to pacte adjoints, donations and other means we can avoid our clients falling into that highest bracket.” He went on: “In a way, Belgium is still a tax haven in this respect”.
Independence
Rubbens states that CBP Quilvest wants to remain an independent player, but confirms that everyone in the sector talks to everyone. He also wants to guarantee the follow-up of what the company stands for. As a branch office, the cost structure is rather light and the middle office and management are completely cost-free. After all, the administration and logistics are in Luxembourg.
Further organic growth is also in the pipeline. Flemish Brabant and West Flanders are currently strongly represented, and there is a desire to expand into the other provinces.
“When we see money lying around, we will still bend over backwards’, Rubbens explained. “Our shareholder is not listed on the stock exchange and looks far ahead,” he continued: “That is a luxury that few parties have these days.”
About CBP Quilvest
- Belgian branch established in 2014
- 1 billion euro under management
- 1,100 client accounts