(Mar 27): LGT Group, formerly the Liechtenstein Global Trust, is not just another European private bank and asset management company looking to tap Asia’s growth. As the largest family-owned private bank globally, the group focuses on only two businesses — private banking and institutional asset management. And, unlike other private banks, LGT Group’s stakeholders, such as employees, shareholders and clients, co-invest in its portfolios, including LGT Capital Partners and the bank’s flagship product, the Princely Portfolio.
Its Princely Portfolio with AUM of CHF12 billion ($16.6 billion) is made available to private banking clients. The alignment of interests between the family, the clients and the employees is achieved by co-investing jointly in this portfolio. Investment managers involved in the investment decision-making are also required to co-invest in the portfolio, creating a very strong alignment of interest.
LGT Group is particularly strong in institutional asset management and alternative investments which are usually of interest to family offices. LGT Capital Partners is its institutional asset management unit, and has more than US$55 billion ($72 billion) in AUM. Its institutional customers include more than 400 pension funds, insurance companies, sovereign wealth funds and foundations including the Princely Family of Liechtenstein.
For FY2017, LGT Group announced a 23% y-o-y rise in net profit to CHF283.4 million. Net asset inflows, excluding acquired assets, amounted to CHF17.7 billion, which corresponds to organic growth of 12%. As at end 2017, AUM increased by 33%, or CHF49.7 billion, to CHF201.8 billion. This includes the CHF18.3 billion in AUM from the acquisition of ABN AMRO’s wealth management units in Singapore, Hong Kong and Dubai last year. Around a quarter of the bank’s total AUMs are from its institutional asset management business. The bank’s Asian private banking AUMs of CHF50 billion were boosted by the acquisition of ABN Amro’s Singapore and Hong Kong portfolio.
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