Awards for Distinction 2012 – Discretionary Portfolio Services


afd2012

Lombard Odier Darier Hentsch

Vincent Duhamel

Vincent Duhamel
Head of Asia
Lombard Odier Darier Hentsch

Discretionary Portfolio Management is the most compelling confirmation of trust between a client and his or her bank, and the predominant model for wealth management in most of Europe. Although it has yet to find wide acceptance in Asia, it remains the most coveted business model for many private banks in the region who want greater visibility and consistency in revenues.

Lombard Odier Darier Hentsch (Lombard Odier) has built itself a niche as one of the few banks in Asia focussed on the discretionary model. Whilst industry estimates peg average assets under management in discretionary accounts in Asia at 4%, Lombard Odier has set the bar considerably higher, with an impressive 50% of assets under management in Asia in discretionary accounts. Asian Private Banker attributes this outperformance to the quality of the bank’s discretionary services as well as its long history of superior service to clients.

Having said that, Lombard Odier has not allowed itself to be limited by its history; rather, it has demonstrated an agility in responding to market conditions that is rare for a centuries-old institution. Bracing itself for increasingly unpredictable markets, Lombard Odier has moved from a traditional discretionary portfolio management model to a risk-based asset allocation model, which was hereto offered only to institutional clients. “Traditional discretionary portfolio management often underestimates risks, we are convinced our new approach lowers volatility in the portfolio,” explains Vincent Duhamel, Head of Asia at Lombard Odier.

In addition, 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 global managing partners who are jointly responsible for all the bank’s liabilities to the full extent of their personal assets. Duhamel sums up clients’ expectations succinctly when he says “Clients come to us for safety and that is what we must provide”

These factors, coupled with its overarching commitment to client interests, make Lombard Odier the clear winner of the Asian Private Banker Best Discretionary Manager award, for the second consecutive year.