In 2018, we added two new staff members to the Asset Management Division in Vaduz. Thanks to the takeover of Semper Constantia, eleven specialists from Vienna have joined the team. The Asset Management Division supports all three market divisions in their target regions by providing them with its investment competence and value-oriented investment approach (see chapter “Strategy and organisation”). It therefore plays a central role within the LLB Group. Our specialists have extensive experience in meeting the investment needs of institutional clients.
Our Asset Management has been Global Investment Performance Standards (GIPS) certified for 16 years. These international quality standards are based on the complete and correct disclosure, as well as comparable presentation of investment results. They ensure that clients receive fair and transparent reports.
The most important award for an asset manager, such as the LLB Group, is to be the best in its category over all main investment classes, i.e. for bonds, equities and strategy funds. At the Thomson Reuters Lipper Fund Awards 2018, the LLB Group was the recipient of these awards. It was also ranked first in the category best “Bond Small Company”. The LLB Equities Dividend Pearls Global (CHF) fund was honoured in the category “Equity Global Income” for the best performance over the last five years. The Asset Management of the LLB Group was also awarded the “GELD” award for the best real estate equity fund in Austria over three years in 2018. The following is a brief overview of the most important awards received:
- Lipper Fund Awards Switzerland 2018: best group over three years “Overall Small Company”, best group over three years “Bond Small Company” and best performance in the category “Equity Global Income” (three awards in one year);
- Lipper Fund Awards Austria 2018: LLB Equities Real Estate Global (CHF) selected as the best real estate equity fund in Vienna over three years;
- Alternative Investments Awards 2018 of “Geld”, the Austrian journal for financial professionals: also for LLB Equities Real Estate Global (CHF) selected as the best real estate equity fund in Vienna over three years;
- Hedge Fund Awards 2018 of “Acquisition International (AI)” magazine: “Best Portfolio Manager – Liechtenstein” and “Best Alternative UCITS Fund” (two awards in two years).
In long-term competitive comparison, LLB has been at the top of the rankings for years with its broadly diversified strategy funds. In this context, broadly diversified means: with the strategy funds we invest in fourteen asset classes (liquidity, CHF bonds, global bonds, real asset bonds, high interest and emerging market bonds, convertible bonds, local equities, global equities, emerging market equities, real estate equities, commodities, hedge funds and disaster bonds) and in around 4’500 individual instruments.
Expansion of the LLB fund range
Thanks to the acquisitions made in 2018, we were able to further expand our range of investment funds. For example, the purchase of Semper Constantia Privatbank AG has opened the door for us to the real estate segment. Following the merger with LLB Österreich, the company now has extensive experience in this business and, in addition to numerous funds, can also offer investors individual access to a comprehensive range of indirect and direct real estate investments.
The volume invested in LLB funds has posted an above-average performance – while keeping costs low – over the last six years . At the end of 2018, the fund volume stood at CHF 30.5 billion. The vast majority of the 612 LLB funds is Europe-compatible, meaning that they fulfil the UCITS V EU directive (see chapter “Regulatory framework and developments”). Furthermore, they all fulfil the criterion of strict diversification. The 40 LLB own funds are largely actively managed by experienced fund managers and are usually licensed for distribution in Liechtenstein, Switzerland, Austria and Germany.
With six different investment strategies from “Fixed Interest” to “Equities” in the reference currencies CHF, EUR and USD, LLB enables the diversification of capital investments. The volume of assets under management at the end of 2018 totalled CHF 6.9 billion.
Client requirements are always at the forefront in the LLB Group. In 2018, therefore, we extended our offering with passive asset management mandates having various investment strategies, with which the equity exposure, in particular, is passively managed. Another new LLB feature is the total return approach of LLB Österreich. Its asset management possesses core competence in exercising mandates with the focus on value preservation and extensive experience in the implementation of value protection concepts.