Awards for Distinction 2011 – Discretionary Portfolio Services


Lombard Odier Darier Hentsch

Henry Pang

Philip Jehle
Head of Private Clients Unit
Lombard Odier Darier Hentsch

Discretionary Portfolio Management is regarded as the predominant model for private banking in most of Europe and although it is still to find wide acceptance in Asia, it remains the most coveted business model for many private banks in the region. Indeed, a majority of the industry believes the discretionary model is the inevitable way forward for private banks who want greater visibility and consistency in revenues and clients who want impartial advice.Being trusted by clients to take independent investment decisions is an affirmation of the quality of the bank’s service offering and the strength of its relationship with its clients. In one client’s words, it is “a multimillion dollar seal of approval.”

Lombard Odier has built itself a niche as one of few banks in Asia focused on the discretionary model and is the deserving winner of this year’s Best Private Bank – Discretionary Portfolio Services Award. Founded in 1796, Lombard Odier is the oldest firm of private bankers in Geneva. Its long history as a private bank focused on the discretionary model is one of the reasons Lombard Odier has been able to achieve a much higher percentage of discretionary assets under management than the industry average. Indeed, 50% of global assets under management at the bank are discretionary whilst 40% of assets under management in Asia are in discretionary accounts, a quite remarkable figure.

Clients who trust Lombard Odier to make investment decisions on their behalf put their faith in the firm’s independent, family-run partnership model and its seven global managing partners who are jointly responsible for all the bank’s liabilities to the full extent of their personal assets. Since it is a privately held company, not vulnerable to shareholder pressure or the constraints of operating in a large group with its accompanying conflicts of interest, Lombard Odier has been able to maintain a long-term vision which is an absolute prerequisite for success for a private bank employing the discretionary model.

“We are patient investors and not traders, wealth creation and capital preservation are at the root of our investment philosophy,” affirms Philip Jehle, head of Private Clients Unit at the bank.