Private Banks

Investment Officer Luxembourg recently had an opportunity to speak with Stephan Matti (pictured above), Group Head of Asset Servicing & Financial Intermediaries at Quintet Private Bank, about his role and the advantages of offering asset servicing and financial intermediary services from within an organisation that also has a large private banking operation.

ABN Amro is broadening the options for clients who want to invest in private equity. For the first time, the bank is offering a basket of private equity managers, in addition to the already existing single manager funds. Meanwhile, the bank is getting ready for the next step: private markets as a structural part of the strategic asset allocation. 

Pressure on banks to manage costs and be more agile is felt particularly keenly by the chief financial officer (CFO). Efficiently provided financial data are key to enabling executives to operate effectively, seek operational efficiencies and increase compliance. A panel of five CFOs assembled by the ABBL discussed how they work towards this, particularly regarding their use of IT and outsourcing. 

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.

Quintet Private Bank is shifting its strategic asset allocation to a global asset allocation framework. “Focusing your bond portfolio on Europe has a lot of jeopardy in it,” says CIO Bill Street in an interview with Investment Officer.

ING has merged the bank’s investment offices in the Netherlands, Belgium and Luxembourg. ‘The aim of the operation is to become stronger together,’ says Bob Homan, who heads up the Investment Office which now employs 50 people.

The rationale behind the merger is that the investment offices of the country organisations actually do the same work. ‘They focus on research, asset allocation, selection of instruments and communication,’ says Homan in an interview with Investment Officer. The merger did not cost any jobs.

The Grand Duchy hosts few portfolio management operations, despite being a world leader for cross-border asset and fund servicing. Banque de Luxembourg Investments (BLI) is an exception. According to managing director Guy Wagner: “We are a small boutique asset manager with private banking DNA.”

With less than a week until the SFDR reporting deadline, client advisers and asset managers in Luxembourg and internationally are gently testing the water. From how to classify different funds and what to report to investors, the financial industry is progressing with caution.

Substantial governance-reform targets have been set for banks and investment firms by the CSSF. Some quick changes are required, but otherwise the regulator’s circular letter 20/759 seeks to drive long-term culture change on boards of directors regarding risk, diversity, and sustainability.

Quintet private bank is counting on an accelerated global recovery in the spring and is advising its clients to increase risk in the short term. The bank is overweight equities, especially those from the US and emerging markets.

With the recovery of the global economy that has begun and the support measures of central banks and governments, the climate is favourable for investments in risk assets, according to Quintet’s Bill Street.