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Lombard Odier in Italy: “the Rolls Royce of private banking”
Article published in Investire, March 2022
It’s easy to say ‘private bank’. It is easy to say ‘personalised management’. However, if you look beyond the marketing, and examine the offerings of many financial companies more closely, it becomes clear that in this sphere what counts is credibility, experience and a tailored service – things that can often prove hard to find. This is why Lombard Odier is launching an unprecedented offensive in Italy: because they know, there is plenty of space in the market. And so, one of the most prestigious and authoritative Swiss private banks, with 226 years of history to its credit, has paired its pioneer in Italy, Alberica Brivio Sforza, with a manager of proven ability, Manuela Maccia, creating a two-pronged attack that will worry competitors.
“We are a private bank, not listed on the stock exchange, and still led by Managing Partners who are completely involved in the management with long-term objectives,” begins Alberica Brivio Sforza. She is speaking as part of a three-way conversation with Investire and her new colleague Manuela Maccia (with whom she worked for five years at BNP Paribas), in which she and Maccia outline this advance on the Italian market. “We are a very solid private bank, with a core tier 1 ratio of 28.5, one of the most capitalised in Europe, with an AA- rating.” In short, it is a bank like no other.
“While we are of course much smaller than many international giants, we are just the right size to be a serious industry player, whilst remaining agile,” explains Brivio Sforza. “Our size allows us to focus fully on performance and to adapt operations where necessary, something that is difficult for larger banks. We can therefore be both stable and dynamic, ensuring that our skilled professionals put their talents fully to the service of our clients.”
“For experienced clients, the most important thing is that their banker meets them eye-to-eye. They need a personalised service rather than a banker who reads from a script,” says Manuela Maccia, who, like Brivio Sforza, has a professional background in international banks – Maccia spent more than 20 years at BNP Paribas, while Brivio Sforza’s varied career includes both BNP Paribas and JP Morgan. “Being distinctive means offering an engine of skills, intellectual capital and a range of products that go beyond benchmarks, which can still create truly tailor-made solutions: a formula that is a bit overused, but which is making a comeback because there is a need for it,” Maccia continues.
Both managers are keen to stress that their bank is not “boutique”. While remaining agile, Lombard Odier’s size makes it a significant player – assets under management are CHF 358 billion (more than half of the assets of Generali – for comparison); the coverage ratio is 201%; with CHF 1.5 billion as consolidated operating income and consolidated net profit of CHF 270 million.
With 2,650 employees, and over 25 offices worldwide, Lombard Odier spans the gamut of global investing. “And such a large structure has at its centre a real nuclear reactor of management research, totally proprietary, totally independent,” Maccia points out, with the enthusiasm of someone who has made a professional breakthrough in an already brilliant career. “The approach is that of a real boutique, but if you look closely you realise you’re dealing with the Ferrari or the Rolls Royce of private banking.” As might be expected with a Ferrari or a Rolls Royce service, there is a general minimum threshold below which Lombard Odier does not accept clients. However, every rule has its exception: if the client has, for example, a generational transfer or a significant income in sight, in such cases they can “enter” with less.
“The point is that personalising the service is very demanding,” Brivio Sforza and Maccia both agree. “Even though we apply our best practices to everyone, and can count on the same great management know-how that comes to us from headquarters, we then arrange everything differently from client to client.”
“In March 2020 I had a group of clients with very large assets, who panicked and asked me to sell everything,” recalls Brivio Sforza, by way of example. “I had to explain that they were wrong and contain their anxiety, at least in part... This means personalisation. In Switzerland, at our headquarters in Geneva, there are over 300 investment specialists in all asset classes, with a very high level of expertise. All research is done in-house, never by third parties: intellectual property that counts.”
Picking up this thread, Maccia says, “We have analysts specialised by sector who carry out stock selection at a global level, and we have very important centres of expertise on topics such as sustainability which have created proprietary metrics to measure how well portfolios are aligned with the climate transition, and which are the envy of the market. We have around thirty analysts to carry out this sustainability research. This is the essence of the tailor-made service – I manage our clients from Italy, but I contribute to the Group’s expertise and development,” adds Maccia, who participates in the global investment committee in Geneva and then manages the portfolios of clients in Italy independently in Milan.
The management platform is fully integrated, and the investment services are Italian (regulated by Consob and Bankitalia), but the accounts are held in Luxembourg – from there, in digital mode, you can access all the bank’s expertise on the various Lombard Odier markets, on any asset class, including illiquid assets. The bank’s unique banking technology platform, G2, which was created 25 years ago and has been constantly developed, is currently undergoing a major evolution that will be renamed GX. “It was created with a precise philosophy,” emphasise Brivio Sforza and Maccia, “which is to distinguish itself from larger groups, keeping performance high, even at the cost of remaining small in relative terms.”
“For me, taking responsibility for a very ambitious growth plan was conditional on having a person with a very high technical profile who could be an integral part of the bank’s investment management,” concludes Alberica Brivio Sforza.
“And I take care of business development with Alberica,” echoes Manuela Maccia, “through our bankers and referrals, as well as family offices with whom we have developed very solid relationships over the years. In times of volatility, such as we are experiencing, there is always room for those who bring in distinctive competition.”
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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