With more than five decades of association with Hong Kong's high-net-worth community, Lombard Odier, one of Switzerland's oldest family-owned private banks, believes the company's independent status provides it with flexibility and the ability to provide impartial investment advice.
Philip Jehle, head of private clients unit, Lombard Odier Darier Hentsch (Asia), says the firm operates with different dynamics from publicly-listed private banks. This includes independence from shareholder pressure, and the capacity to align investment initiatives between clients and partners.
'Not being quoted on any stock market does have its advantages because we can offer independent advice and avoid any conflict of interest. With a clear operating vision, our values and approach to investment and wealth management strategies remain constant with the needs of our clients and the market environment rather than external pressures,' says Jehle, who has more than 20 years' experience in the Hong Kong private banking sector. 'We do not have to face commercial risks since we do not carry any debt on our books. For example, all resources are dedicated to our private banking and asset management processes, preventing conflicts of interest with our clients.'
He says for most investors and financial professionals, the financial crisis had been a time of turmoil, but for Lombard Odier, the past 18 months has been a 'golden spot'.
'Every 10 years or so, an event similar to the most recent financial crisis comes along and rocks the markets. It is at times like these the investment strategy and financial research structure used by boutique banks, such as Lombard Odier, really pays off,' he says.
'By adhering to the trusted principles of our business model, clients avoided the worst of the impact and losses brought about by the financial crisis, and over-leveraging to gain access to complex investment structures. As a relationship manager, knowing you have done the best possible job for your clients produces an 'island of contentment feeling',' Jehle says.
He says the firm tries to discourage clients from leveraging, which prevents them from exposure to hazardous investment strategies such as the subprime mortgage crisis.