LGT, the world’s largest family-owned private banking and asset management group, has made a foray into India’s private banking sector. Prince Max Von und zu Liechtenstein, Chairman of LGT, shared his thoughts on the group’s entry into the Indian market. Edited excerpts follow.
What is the vision behind LGT Group’s venture into the Indian wealth management space?
India is a large, fast-growing economy. This results in a dramatic increase in wealth across the spectrum. However, access to quality financial advice for families remains difficult. The needs of HNI/UHNI families are also becoming complex and they are looking for a stable global partner for investment solutions, wealth planning, succession, philanthropy, etc. We are excited to combine this knowledge and experience with a dynamic Indian platform. and offer the same quality service to Indian families.
How does LGT Group plan to differentiate itself in the Indian market?
LGT’s family ownership and governance enable effective decision-making and enable a long-term approach. We have a deep commitment to responsible investing and see tremendous opportunities to share LGT’s experience in sustainable investing and long-term wealth management with Indian clients. Additionally, access to a global platform and expertise is a significant advantage for our team in India. In today’s connected world, to make effective investment decisions, you need to combine deep Indian expertise with global expertise.
Will the LGT group be ready to make more acquisitions to develop its activities in India?
Given the growth drivers, there is a lot of potential for organic growth, but we are open to any interesting inorganic opportunity to grow our business, if we deem it necessary.
O What about the European style of private wealth management? How do you intend to adopt it in India?
While the principles of private banking remain the same, many European clients are second or third generation clients, while India remains a first or second generation wealth management market. You need a different approach and goal for this. Nevertheless, our experience with European families to help them transfer and preserve their heritage over several generations is also of great interest to families in India.
What are the challenges and opportunities for the wealth management space in India?
The demand for wealth management in India is attractive. We believe there is a gap in customer service and white space for a global-local approach to customer service. We want to bring the best of our global practices and platform here while maintaining the agility that the Indian market needs at this stage.
Why is sustainable investing the new interest of HNIs and UHNIs to park their funds?
In our view, traditional financial analysis performs best when supplemented with insights from sustainability research. While the theme of sustainability has already become mainstream in the institutional sector, private clients still make sustainable investments to a lesser extent. We pay particular attention to the sustainability of our investments and also help our clients to invest sustainably.
Please expand LGT’s expertise in philanthropy.
Philanthropy and engagement have been important components of LGT and our service offering for over a decade. The initiative is based on the longstanding and successful philanthropic commitment of my family. To professionalize our philanthropic commitment and institutionalize it within LGT, the LGT Venture Philanthropy Foundation was founded in 2007. Since then, the foundation has distributed $70 million. A key tenet has been the view that successful giving, like good portfolio management, requires strategic clarity, discipline and diversification. After successfully establishing this approach, LGT began offering clients advice on their philanthropy and grant engagement opportunities.
Posted on October 22, 2022