Coupled with an increased need for diversification, Lombard Odier's «friends» in the region have made even greater contributions to its business success during the pandemic, according to Asia chief executive, Vincent Magnenat.

Rather than acting as a hurdle to business, the coronavirus pandemic has led to even greater demand for collaboration through onshore alliances – a key strategic focus for Lombard Oder in Asia.

«[T]he local markets in Asia […] where we have [alliances], most of them, they have suffered quite a lot. In the Philippines, the local equity market is still down more than 20 percent,» said the private bank's Asia CEO Vincent Magnenat, in a virtual conference earlier today, highlighting the increasingly urgent need for more diversification.

«This crisis has demonstrated the real need that our partners have onshore.»

«Real Need»

Lombard Odier’s onshore model focuses on distribution and it has engaged partners, and even some end-clients, to provide them with solutions on all fronts including training for relationship managers, communication of house views or support for asset and risk allocation strategies.

In Thailand, for example, the Kasikornbank has launched a number of new products including a feeder fund, private equity investments and fixed maturity plans supported by Lombard Odier. And in Indonesia, Bank Mandiri has launched insurance wrappers with Lombard Odier funds embedded within.

«[There is] a real need for diversification; a real need for them to engage with clients; a real need to come up with new ideas and new products,» Magnenat said.

Inspiring Families

Investment aside, Magnenat also noted the increased attention from wealthy families – many of which in the region continue to own and operate their own businesses – to consider issues such as legacy and governance. The bank has engaged in this area through various means including webinars with senior managing partner, Patrick Odier.

«We did quite a few a number of webinars […] sharing our expertise and what we have seen with families over the last 200 years,» Magnenat said. «And, of course being a seven-generation family business, we are trying to inspire and support our clients all around the region on these themes.»

China Onshore

Of the onshore markets in Asia, China has obviously been a noteworthy one due to Beijing’s commitment to the wholesale opening of its financial sector to foreign participants. Lombard Odier’s six onshore alliances in Asia – Thailand, the Philippines, Indonesia, Singapore, Taiwan and Australia – do not include the largest economy in the region.

«[China’s market opening] is very positive. Of course, we believe also in onshore,» Magnenat said, reiterating the bank’s focus on tie-ups in domestic markets to leverage local capabilities. «We are in the process of assessing alliances in China.»

«We Have Friends All Around the Region»

At the group level, Lombard Odier saw net profits surge more than 65 percent to reach 119 million Swiss francs ($130 million) with net new money nearly reaching $6.6 billion. Although the bank does not break down regional figures, Magnenat said the bank performed positively in Asia and emphasized, once again, the gains from onshore alliances.

«[I]t has been a very interesting time because we have friends all around the region,» Magnenat added. «And I think in the current environment, it was so beautiful and so emotional to engage with [them].»