Institutional Market

In 2009, we increased our investments in strategy research, which benefited our strategy funds and mandates. Measured against the comparison group of the Lipper universe, our funds achieved excellent results. In addition, the number of custodian bank mandates entrusted to us developed very positively.

Structure

The Institutional Market Business Division encompasses the financial intermediary business as well as the investment funds and asset management of the LLB Group. Together with the Group companies: LLB Asset Management AG, LLB Fund Services AG and LLB Fondsleitung AG, we concentrate on fulfilling the requirements of professional investors and financial intermediaries – particularly those of fiduciaries, asset managers, fund promoters and fund companies. Our target markets are Liechtenstein, Switzerland, Germany and Austria. Within the context of a one-stop shop, we offer comprehensive investment fund services. This includes private labelling (setting up and administration of funds for third parties), custodian bank business and the management and distribution of our own funds. Roland Matt is responsible for the Institutional Market Business Division.

Market environment

Institutional asset management is subject to cyclical factors. The basic business conditions in the Liechtenstein financial centre and the turbulence on the stock markets led in 2009 to changes in investment behaviour, accompanied by a certain restraint in the setting up of investment funds, and a slowdown in the inflow of new money. Moreover, competition between the individual fund domiciles intensified. It was precisely in this challenging environment that Liechtenstein was able to fully exploit its outstanding advantages as a centre for investment fund business, i. e. EU-compatible basic conditions, regional proximity, as well as rapid and uncomplicated fund launching procedures. It is particularly pleasing that Swiss companies, above all, are increasingly choosing Liechtenstein as a venue for launching funds.

Competitors

In comparison with the previous year, the competition situation remained largely unchanged but was marked by intensified pressure on consolidation and margins. In our domestic market, our competitors comprise the other Liechtenstein banks that are active in intermediary business. In Switzerland, we compete, in particular, with the large and private banks as well as asset managers. In addition, the fund services business sector is faced with intensive competition from the other fund centres, especially Luxembourg and Switzerland.

Strategy

Within the LLB Group, business with institutional clients represents a growth sector. We are expanding our activities in Liechtenstein to strengthen our leading position in this market. In doing so, we are implementing the following measures:

  • expansion of private labelling services and extended investment possibilities for fund promoters;
  • improvement of processing efficiency;
  • above-average performance with our fund products and in asset management.