Institutional Clients

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We consistently view the financial world from the perspective of our clients. This supports us in striving to provide them with comprehensive expertise and personal services. We offer them an extensive package of specialised and innovative services, the outstanding investment competence of our Asset Management, as well as our broadly based investment fund powerhouse. All of which makes the LLB Group a reliable partner for financial intermediaries and institutional clients.

Specialised in serving professional clients

Fiduciaries, asset managers, fund promoters, family offices, insurance companies, pension funds and public institutions, in spite of their very different business models, they all have one thing in common: they should manage and increase the capital entrusted to them as effectively as possible. As their partner, the LLB Group offers optimum conditions for this purpose. Highly specialised contact persons are readily available to listen to client’s concerns and provide competent advice. Our client advisers have completed a certification programme according the standards of the Swiss Association for Quality (SAQ) and they are regularly tested and recertified.

We offer every client, who commissions us to manage his assets, outstanding investment advisory competence, as confirmed by the many awards we have received from various independent institutions (see paragraph “Asset Management”).

We not only want to offer our clients the best possible service today, we also want to hear about their future requirements. For this purpose we regularly carry out client surveys to learn in which areas we can improve and how we can enhance our services.

Digitalisation for closer relations with clients

By providing them with innovative digital apps, our professional clients in particular can structure their interaction with us in a more efficient, personal and convenient manner. Mindful of this aim, we once again expanded our digital channels in the year under report. These efforts have proven their worth once again in the second year of the corona pandemic. For example, despite the restricted possibilities relating to personal contact, we were still able to maintain close ties with our clients and meet their needs and concerns without any deterioration in quality. The duality of our services – personal advice coupled with digital services – is appreciated by our clients and utilised where appropriate for them in the individual case.

Fund powerhouse

Investment fund business is an important earnings pillar for the LLB Group offering great growth potential. In the year under report our investment fund business posted a substantial growth in volume of CHF 5.3 billion (2020: CHF 2.1 billion). The fund assets it manages climbed to CHF 44.0 billion (2020: CHF 38.7 billion).

Our four investment fund companies in three countries offer clients access both to the European and Swiss economic areas. This makes us one of the most versatile fund vendors in Europe: added value that our clients seek, appreciate and use more and more often

Our fund management companies focus on delivering private label solutions (known in Austria as special funds or “Master-KAG” solutions), which can be structured very flexibly. They enable large volumes of assets to be efficiently managed and structured. In line with our “all in one shop” concept, we offer our home markets all the products and services involved in private label fund business. This creates the maximum degree of flexibility to enable us to fulfil our clients’ wishes. We plan and set up made-to-measure funds, both in-house and for independent asset managers, family offices and other fund promoters. We structure and manage these vehicles and ensure modern, state-of-the-art risk management. At our business locations in Vaduz and Zurich, we complement our services by assuming a representative function for foreign funds. In Liechtenstein and Austria, we take over the function of custodian bank / depositary.

In 2021, we intensified our marketing efforts for our fund powerhouse and, therefore, established our range of products and services more firmly in our home markets. In the year under report, a decision was made to introduce a uniform, modern fund platform for all our investment fund locations, thus laying the foundation for future successful growth.

Fund business in Liechtenstein and Switzerland

LLB Fund Services AG in Vaduz is one of the leading fund vendors in Liechtenstein. Its holistic and needs-oriented advisory approach enables our clients to access the full spectrum of fund services from one source. Thanks to its membership of the EEA and its customs agreement with Switzerland, Liechtenstein offers unrestricted access to two economic areas and thus ideal conditions for cross-border distribution of investment funds. Last year, for example, we were granted a license – as the first vendor in Liechtenstein – to market a Liechtenstein alternative investment fund to private investors in Germany.

LLB Swiss Investment AG in Zurich offers its clientele access to fund solutions according to Swiss law. This jurisdiction is ideal for funds with investments which are subject to withholding tax (e.g. Swiss equities), and are thus perfectly suited for family office structures. In addition to comprehensive investment fund services, this company also takes over the representative function for foreign funds in Switzerland.

This business area posted a net new money inflow of CHF 1.3 billion in the year under report. The fund volume expanded to CHF 25.0 billion (2020: CHF 21.4 billion). At the end of 2021, we managed or held in custody a total of 329 investment funds.

Fund business in Austria

With its two capital investment companies, LLB Österreich is one of the leading vendors of investment funds and real estate funds in the Austrian market.

Measured in terms of the number of managed funds, with 294 funds, LLB Invest Kapitalanlagegesellschaft ranked first in the Austrian market. Over eighty domestic and international asset managers, banks and family offices trust LLB Invest KAG as a reliable partner.

LLB Immo KAG is the leader in innovation on the Austrian market, especially in relation to products for institutional investors. It invests directly in high-yield real estate in the stable Austrian and German markets. It pays special attention to sustainability criteria in managing real estate funds. For example, some of its funds have been awarded either the Austrian eco-label (the highest sustainability certification for real estate funds in Austria) or an ÖGUT assessment (Austrian Society for Environment and Technology). Real estate funds are generally regarded as a first-class diversification possibility for portfolios and, especially in the persisting low interest rate environment, as a stable earnings generator.

The Institutional Clients Austria business segment posted a net new money inflow of CHF 2.4 billion in the year under report. The fund volume expanded to CHF 25.9 billion (+14.5 %). At the end of 2021, we managed or held in custody a total of 360 investment funds.

Financial intermediaries

The needs of our intermediaries and independent asset managers are always the focus of our activities. We work hard to maintain a professional and partner-like relationship with them. To achieve this goal our client advisers work closely with our internal specialists, particularly in relation to the subject of sustainability. Execution-only business is also of prime importance to us; we have made this business even more efficient by extending the bidirectional interfaces.

Expansion of digital services for our clients

In addition to personal advisory services, the provision of user-friendly digital tools is becoming increasingly important in our collaboration with intermediaries and independent asset managers. In response to this development, we expanded the scope of our digital services in the year under report.

For example, we have modified our client reporting to focus even more on individual client requirements. This means that institutional clients have more control and can generate various reports for different applications. They can use the print manager function in our Online Banking to print out the statements they need.

In addition, we offer advisory services via video, creating a further channel of communication. During the corona pandemic this enabled us to keep in contact with our clients in spite of the physical distance.

Group Business Compliance

The regulatory requirements for financial service providers are becoming increasingly extensive. We do not intend to leave our clients to deal with this development by themselves. In recent years we have, therefore, significantly expanded our Business Compliance Department. This enables both our clients and our client advisers to call on comprehensive specialist support when dealing with complex business cases and clarifications.

The staff of the Group Business Compliance Department serves as a hub bringing together clients, client advisers and compliance specialists. For example, complex business cases and constellations can be analysed together with the client to avoid time-consuming checking back. The time saved by this can then be used more effectively for advising and caring for clients.

Asset management

For many years the market environment for investments has been challenging. Accordingly, it requires great experience and expertise to be able to make the right decisions. The Asset Management of the LLB Group combines these qualities. Our specialists have extensive experience in fulfilling the investment needs of private and institutional clients. All three market divisions can call on this vast expertise in their individual target regions (see chapter “Strategy and organisation”). The Asset Management team, therefore, plays a central role within the entire Group.

Most of the more than sixty LLB funds are actively managed by experienced fund managers and are usually licensed for distribution in Liechtenstein, Switzerland and Austria.

Sustainable investment products

The financial services industry plays an important role in the transition to a climate-friendly economy. For the LLB Group’s Asset Management this area of sustainable investing has been a priority for years. We offer sustainable asset management both for portfolios composed of individual securities and investment fund portfolios. In addition, we have converted the majority of LLB funds into sustainable investments and launched new sustainable LLB strategy funds in the year under report. In 2022, we shall extend our range of “LLB Impact Funds”, which are classified as ecologically sustainable according to EU taxonomy. Our aim is to develop investment products and services, which strive to achieve a financial return while also satisfying and contributing to the highest ecological, social and ethical criteria. Through our membership of the key UN financial initiatives for the protection of climate, we underline our efforts to achieve more sustainability (see chapter “Responsibility for the economy, society and the environment”).

To enable our front line staff to keep pace with this development, we introduced an extensive sustainability training programme in October 2020. In the year under report, almost 400 client advisers completed the modular training programme. In the next step, the sustainability training modules will be integrated in a self-training course enabling our new employees to complete the training quickly. We shall also ensure that are staff are keep up to date with the latest developments relating to sustainability by providing specific information briefings such as sector updates and key point training sessions.

Sustainable investment concept

When selecting sustainable investments, we are supported by a systematic concept, which combines negative exclusion and positive selection criteria. Excluded are investments in companies, which violate important national or international standards or which derive a substantial part of their turnover from controversial industries and sectors. Investments are made in companies, which predominantly consider or make a contribution to the three ESG themes (environment, social and governance).

When making investments, in addition to their extensive experience and expertise, our asset managers can call on our own concept: the “LLB Multi-Factor Model”. This provides a broadly based quantitative analysis of large investment universes and therefore a sound basis for the selection of the most attractive securities. We always pursue the goal of achieving more added value for the client over the medium to long term.

For many years, our investment products have achieved top positions in industry-wide comparisons and competitions. In 2021, the LLB Group was again the recipient of several awards.

For example, the LLB Bonds Emerging Markets ESG fund in the category “Bond Funds Emerging Markets” won the German fund prize. LLB Österreich attained an excellent third place among 73 participants in the performance project IV of the FUCHS | RICHTER testing body.

Asset management

Client requirements are always at the forefront at the LLB Group. To enable clients to invest their assets according to their investment horizon and their personal risk tolerance, we offer five different investment strategies. These range from “Conservative” to “Equities” in the reference currencies CHF, EUR and USD. In implementing their investment strategy, our clients can now select from five different models. For example, with the “LLB Comfort Offering”, depending on the client’s wishes, investments can be made in the categories: global active, in Switzerland, alternative, sustainable or global passive. In addition, with its total return concept, LLB Österreich offers a mandate focusing on value preservation.

The volume of assets under management at the end of 2021 stood at CHF 10.1 billion (2020: CHF 8.8 billion).

Partner-like dialogue and transfer of knowledge

The transfer of knowledge and the strong networking with external partners is particularly important for intermediaries. We encourage this exchange of views, opinions and knowledge using various channels.

Our “LLB Xpert Views” online platform is a central point of contact for fiduciaries, independent asset managers, investment fund managers and fund promoters. Via this online platform we can make available our know-how in the areas of asset management, as well as law and taxation to our clients. Moreover, “LLB Xpert Views” supports our professional clients in complying with the latest regulatory provisions.

The personal exchange of views and experience is also very important to us. We therefore organise exclusive round-table discussions several times a year with intermediaries. Within the context of these discussions, LLB internal experts and investment specialists regularly inform clients about current practical issues. On account of the corona crisis we were unable to hold any round-table discussions in the previous year, so our clients were very pleased that we were able to organise at least a few of these events in the year under report. The feedback we received from them confirmed how important it is to intensively nurture personal interaction in addition to online meetings.

Partnerships with financial centre players

The essence of our memberships in various associations is to encourage and promote the exchange of knowledge and the networking of financial centre players. As a result, we are always informed at firsthand about which subjects and issues are currently important, or will become so in the future. Moreover, this offers us the possibility of actively participating in shaping the framework conditions, which determine our business model.

Our most important memberships are:

• LLB Asset Management AG, is a member of the Liechtenstein Association of Independent Asset Managers and a committed partner in the development of the financial centre.
• LLB Fund Services AG, is a member of the executive board, and provides the Vice Chairman, of the Liechtenstein Investment Fund Association, which actively promotes the attractiveness and competitiveness of the Liechtenstein fund centre.
• LLB Österreich is a member of the executive board of the Association of Austrian Banks and Bankers.
• Its two subsidiaries, LLB Invest KAG and LLB Immo KAG, are represented on the executive board of the Association of Austrian Investment Companies, – the umbrella association of all Austrian administration companies and all Austrian real estate capital investment companies. They are also members of the Association of Institutional Real Estate Investment Companies (VII).
• In Zurich, LLB Swiss Investment AG is a member of the Asset Management Association of Switzerland, the representative trade association of the Swiss investment fund and asset management industry.

Institutional Clients Division becomes International Wealth Management (IWM)

The introduction of the new corporate strategy brings a changeover from three to just two market divisions (see chapter “ACT-26”). In addition to Private and Corporate Clients (as previously), a new  International Wealth Management Division has been created. This division encompasses various business areas from the former Institutional Clients (Fund Services, Institutional Banking Österreich and Institutional Banking Liechtenstein) and Private Banking (Private Banking Österreich as well as Private Banking International) Divisions. These market divisions will also focus exclusively on clients and distribution.

“We want to be perceived as a safe and sustainable private bank. This positioning is based on two core elements – the security, which we as the LLB Group project, and the competence that is our hallmark."

The individual business areas of the IWM should make a substantial contribution to overall growth within the LLB Group. Our stated goal is to enhance our position as the leading wealth management bank in Austria, to expand our activities on the German market and to intensify our active sales and marketing efforts in the Swiss market for asset managers. Two new business locations in Salzburg and Zurich will support these endeavours. We shall accelerate our structured sales and marketing efforts, in the Middle East and Eastern Europe that were commenced as part of our StepUp2020 strategy. As regards investment fund business, we want to further extend our market leader position and better exploit the opportunities arising from cross-selling. We intend to enlarge our advisory teams in institutional client business to enable us to intensify our marketing efforts in this market. Efficiency, as the new strategic core element, will also be prioritised in the new International Wealth Management Division through the bundling of international distribution activities.

Business segment result

At CHF 64.9 million, the segment profit before tax of the Institutional Clients Division was up more than 10 per cent year on year. Operating expenses were only slightly higher while operating income rose by 6.4 per cent to CHF 132.4 million. Income from interest differential business was impacted by the persisting low level of interest rates and therefore fell slightly. In contrast, fee and commission income increased by 10.7 per cent to CHF 108.6 million thanks to active sales and marketing efforts and increased client assets under management. At CHF 3.6 billion, net new money inflows were substantially higher than in the previous year. The investments made in the fund powerhouse have proven their worth with gratifying inflows being registered by the segment, especially from investment fund business. At CHF 61.0 billion, the business volume exceeded the CHF 60-billion mark for the first time.

Segment reporting

Performance figures

Additional information