Switzerland-based investment house Lombard Odier has reported a 4% increase in assets under management since the end of December 2022, reaching 198 billion Swiss francs of assets at the end of June 2023. The result is due in part to “solid contributions” due to new net inflows in its private clientèle and asset management units, the firm stated.
At the same time, the firm says it is pursuing strategic investments in its operations. At the end of June 2023, the total assets of the Group’s clients reached 308 billion Swiss francs.
“As an investment house whose business model is based on the management of its clients› assets, Lombard Odier has continued to attract net inflows of funds in the first half of 2023,” said Hubert Keller, the firm’s Senior Managing Partner.”
Stable consolidated profit
The group’s operational income reached 704 million Swiss francs, up 2% over a year previous. The net consolidated profit remained stable at 135 million Swiss francs. Solid net fund inflows and rising markets in the first half-year compensated for the negative effect of exchange rates, the group said.
Lombard Odier claims that its balance sheet remains solid, liquid and prudently invested, with total assets of CHF 15.5 billion at the end of June 2023. The group said that it is strongly capitalised. As of 30 June 2023, the group’s CET 1 ratio is about 30% “one of the most robust in the sector.”
Fitch Ratings confirmed in July 2020 the group’s AA rating based on its stable forecast.
Leading in sustainable investment
The firm says it sees itself as being a leader in sustainable investment. It is convinced that the green transition will allow its clients better returns. Lombard Odier Investment Managers (LOIM) launched in June 2023 its sustainable investment platform holistiQ Investment Partners, in partnership with Systemiq, a leader in advising companies and governments about sustainability.
“holistiQ Investment Partners seeks to deploy large-scale capital in the transition to a low carbon economy, respectful of nature and socially just,” said Keller. “We are convinced that investment opportunities in the transition are becoming numerous and attractive.”
In the first half of 2023, LOIM also announced its Future Electrification strategy. This strategy seeks to take advantage of opportunities linked to new sources of return in the field of electrification “as the global energy system evolves towards an electrified, decentralised, clean and efficient model,” said the firm. The fund has also seen lively interest from investors, with over 400 million US dollars raised since its May launch.