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Swiss private bank EFG is launching a London-based team to attract Asian clients who are looking to diversify where their wealth is managed in the face of US President Donald Trump’s trade war and rising geopolitical tensions.
The move, which is planned for the summer, is the latest sign that the UK capital has retained its position as a hub for managing the money of the ultra rich.
EFG’s chief executive Giorgio Pradelli told the Financial Times that rising geopolitical tensions in recent years — exacerbated by the US trade war — were creating volatility and uncertainty, prompting clients to diversify where their money was managed.
“Asian clients who in the past used to invest in the US are now looking to diversify more into Europe,” he said.
“Private banking is all about geopolitical risk diversification — clients are always looking for safe havens.”
London is the world’s second-largest centre after Switzerland for holding international assets, with a total of $2.2tn, according to a Deloitte ranking.
EFG’s new London team will be managed by Oliver Balmelli, who is currently deputy chief executive of the Singapore office, and will grow to up to 10 people through internal and external hires.
Pradelli did not provide details of EFG’s targets for the business, but similar-sized teams launched by the bank in recent years were set up to attract about SFr3bn ($3.7bn) of assets within their first three years.
EFG’s move follows the decision by Bank of Singapore last year to close its Luxembourg office, which was set up as a means of continuing to service European clients after Brexit, and focus on its London base.
In the years running up to Britain’s departure from the EU in 2020, international financial institutions that had previously used London as their European headquarters opened additional offices in EU financial hubs such as Paris, Frankfurt, Amsterdam and Luxembourg.
Bank of Singapore, which is the wealth management arm of Singapore lender OCBC, shut its Luxembourg outpost after six years because it felt it was able to continue to serve EU-based customers from London, despite rules that make it harder to pitch to clients on the continent.
“Brexit created some issues, but London has always been a very important location for wealth management,” said Pradelli. “It is one of the few cities that has always been attractive to clients from the Middle East, Far East, Europe and the US — and more recently from Latin America.”
Some other banks have enlarged their teams in Switzerland to target wealthy Asian clients worried about geopolitics. Julius Baer, along with others such as UBS, LGT and Pictet have dedicated Asia desks in the country.
Additional reporting by Josh Spero and Mercedes Ruehl
https://www.ft.com/content/52f861e3-f1bc-46a0-ac7c-c2419cbc183b
