insights.

Lombard Odier won two awards at the Banker/Professional Wealth Management Global Private Banking Awards 2017

The Swiss-French Oncology Network has set up a structure enabling patients with advanced cancer to access cutting-edge technologies and receive new therapies

We are harnessing the power of factor-based investing to build, what we believe to be, one of the most robust asset allocation frameworks available to private investors

The pick-up in global activity calls for continuity in terms of portfolio positioning, in risk-on mode. Growth assets will continue to outperform and a stronger euro now seems to be factored into European equity markets

In our CIO Flash Bulletin “Is Argentina back on track?” published last month, we discussed the positive economic fundamentals and the outlook for reforms. In our view, Argentina is recovering and the country has good potential for growth. After a symbolic victory in primary elections held in August, the current administration is further strengthened after the mid-term elections held last Sunday 22 October 2017.

Latin America admittedly trails Asia in terms of economic fundamentals and credibility, but nonetheless also stands to benefit in the near-term from the improved global environment

In Japan, the longevity of the current easing framework is a more important consideration than business cycle classifications – particularly since the terms of top monetary policy decision-makers end in a few months.

FW de Klerk outlines the challenges facing today’s global leaders, and talks about his work with the Global Leadership Foundation

Our innovative spirit has always driven us to constantly rethink and we are proud to announce the opening of our representative office in Tel Aviv, Israel.

The upcoming snap election looks like a walk in the park for Prime Minister Abe and the ruling coalition of Liberal Democrats and Komei.

Year-to-date euro appreciation should be considered a reflection of economic outperformance, rather than a threat to future growth in the region.

What does ‘doing well by doing good’ mean in the field of public health? 

The future of data is not just in predicting our outermost behaviours, but understanding our innermost ones. What impact will psychometric
data have on the financial world?

Eight years is a long time in a bull market.
Can an active approach help avoid the pitfalls of passive investing when the markets turn sour?

Tax negotiations have resumed in the US, with some cuts to be possibly enacted ahead of the 2018 mid-term Congressional elections – even though the economy is currently in no need of additional fiscal impetus.

Can vast amounts of structured and unstructured data steer new forms of value creation, in terms of financial value and social impact?

“The current economic and market cycle is over-extended” is an oft-heard cautionary refrain these days. That the recovery began eight years ago is indisputable – but one should not forget that it was initially confined to the US. Europe suffered an extremely severe sovereign debt crisis in 2011-2012, while the vicious four-year down cycle in emerging markets ended only mid-2016.

With the eurozone recovery well-advanced and the euro gaining ground, we are positioning portfolios to take full advantage. But can a new generation of European leaders turn its economic gains into political reforms?

Innovation lies at the heart of our heritage as we have been constantly rethinking the world around us for over two centuries. 

In a world of increasing humanitarian problems, we look at how to design the next generation of global solutions, and harness the financing needed to meet the Sustainable Development Goals.

All too often, services for women are just dressed up in pastel colours. But when studies suggest women and men take different approaches to managing their wealth, how should private banks respond? We ask four Lombard Odier bankers for their views.

France Digitale celebrates 5th anniversary with Lombard Odier at top tech day

Innovation is the cornerstone of our philosophy. It’s what has enabled us to traverse 40 crises and continually rethink over the course of our 220-year history. We partner with initiatives like France Digitale  who believe in the power of technology and want to transform France into a place that fosters and nurtures start-ups.

While MSCI¹ could reclassify Argentina from Frontiers to Emerging Markets next year, we think that investing in local rates is the best way to access the positive cycle in Argentina, writes Stephane Monier, Chief Investment Officer

Through our 220-year heritage, we have dedicated a deep responsibility to leverage finance for the benefit of society and we have continually carried out philanthropic activity in Switzerland and further afield. In the spirit of Geneva’s humanitarian tradition, our foundation, Fondation Lombard Odier, is supporting the creation of a new Centre for Philanthropy at the University of Geneva. 

The global economic upswing: top opportunities and key risks

We live in extraordinary times. In the coming decades, curing genetic illnesses in children may move within reach for the first time in human history. Yet how far this revolution in genetics and science can take us, and what we need to get there, are not easily accessible to the non-specialist.

We’re celebrating 10 years in our Madrid office! Our Maison has always had a global focus combined with local expertise so we can best serve our clients and we are proud of our international presence.

Will the US reform agenda prove the ultimate casualty of the chaos on Capitol Hill?

Stéphane Monier
Chief Investment Officer, Lombard Odier Private Bank

We have adjusted our underlying asset allocation to benefit from a number of key new structural trends, and to reflect a world of lower expected growth and investment returns ahead.

Lombard Odier is pleased to announce its support for a landmark transaction realized by a leading humanitarian agency, which has the potential to transform the way initiatives with a high social impact are financed.

Les marchés émergents ont réalisé les meilleures performances du premier semestre 2017. Nous conservons notre surpondération – établie de longue date – des actions et de la dette en monnaie locale des marchés émergents et analysons les risques à venir.

Article publié dans Bilan le 30 août 2017

Stéphane Monier
Responsable des investissements

Total client assets rose by 4% to CHF 242 billion in the first half, of which assets under management were CHF 164 billion, with growth in all three business lines
Consolidated net profit amounted to CHF 69 million, up 13% versus half year 2016
Strong fully-loaded Basel III CET1 ratio of 28.7%

Plusieurs facteurs économiques expliquent l'appréciation de la monnaie unique, particulièrement face au franc suisse et au dollar. Analyse de l'impact potentiel de cet essor.

Article publié dans Bilan le 16 août 2017
Par Samy Chaar, Chef économiste, Lombard Odier

As one of the defining events of recent economic history, most investors will remember where they were when the global financial crisis began. In the summer of 2007, I remember being called off vacation and returning to my office on news that BNP Paribas had suspended three funds exposed to the US subprime mortgage market. What happened next is, of course, history. Looking back, 10 years on, there are parts of the economy, asset classes and industries that are yet to recover – and lessons that are yet to be learned. By Stephane Monier, Head of Investments for Lombard Odier.

Le bouleversement du rôle traditionnel des obligations et les valorisations élevées des actions poussent les investisseurs à repenser l’allocation d’actifs traditionnelle. Place à un nouveau moteur de performance, l’approche «cœur» et «satellites», capable de mieux répondre aux attentes des investisseurs aujourd’hui et demain.

Article publié dans Le Temps du 7 août 2017
Par Hubert Keller, Associé gérant du Groupe Lombard Odier

Europe’s insurance industry is the world’s largest, boasting almost 5,000 companies and employing over a million people. Its products can offer some interesting wealth planning opportunities for individuals across the continent. Here we consider some potential benefits – and risks –  for fictional clients living in France, Spain and the UK.

This year at Lombard Odier, we celebrate a true milestone. It’s been 30 years since our Independent Asset Management business was founded. 

With Brazil’s President Michel Temer formally charged with corruption last month, the country has entered a new period of political instability which could pose a threat to the recent economic rebound. Delays to crucial reforms would make the country’s recovery more difficult in the short term, but Brazil is undergoing a democratic revolution in transparency that we believe investors can be optimistic about. Even if political uncertainties remain, economic reforms are in progress, writes Stephane Monier, Head of Investments for Lombard Odier.

Charities in the UK were quiet around the country’s EU Referendum vote in June 2016.  Except for those lamenting the likely loss of EU funding, the majority of charities in the UK did not see Brexit as a pressing priority, since most deliver their services in the UK.

Emerging markets were star performers in the first half of 2017, and we retain our long-standing overweight to emerging market equities and local currency debt. Here we consider risks ahead - in US rates, oil, China and Brazil – and how investors should navigate this changing landscape.

Stéphane Monier
Head of Investments, Lombard Odier Private Bank

The value of Bitcoin more than doubled in the three months to end-June, making it the world’s best performing currency in the second quarter. Back in January 2016, a Bitcoin was worth about 430 US dollars (USD); today it is worth more than USD 2,5001.

The “goldilocks” economic environment of improving growth and stable inflation  leads us to maintain our risk-on investment stance.

Now that political concerns have abated, investor focus is shifting back to fundamentals. The particularly improved picture in the Eurozone warrants continued preference for European equities.

The corollary is that an inflexion point in ECB non-conventional monetary measures lies ahead, quite probably the main game changer of coming quarters: we have thus begun to position portfolios for euro appreciation.

The impact of a tighter ECB stance on European bond markets will need to be closely monitored: higher core yields, wider spreads?

Oil seems the only potential disruptive factor in this ultra-low volatility world. At this point, we reaffirm our range-bound scenario.

Euroscepticism is on the wane, after a series of populist party defeats in recent elections. Nevertheless, the situation in Italy and the popularity of Five Star Movement bear close monitoring.

The European economic recovery is broadening, with improving external demand adding to already robust domestic activity.

Progressive (rather than sharp) ECB policy normalisation is likely going forward.

Asian economic and trade conditions are looking good, with China progressively replacing the US as the dominant force in the region.

Reduced dependence on the US market makes Asian exporters less vulnerable to any protectionist measures that could be taken by the Trump administration.

Downside risks to the Russian economy have subsided, but the same cannot be said about Brazilian politics.

Japan’s cyclical conditions remains solid, with growing domestic consumption and investment – and even incipient signs of wage inflation in some segments of the labour market.
The monetary policy framework unfortunately ties the economic outlook largely to external factors such as crude oil prices, US fiscal policy and geopolitics.
The recent Tokyo assembly election results will drive doubts about Prime Minister Abe’s political longevity, heralding a return of factional competition and leadership uncertainty.

Investment Strategy Podcast

Stéphane Monier
Head of Investments, Private Banking

Samy Chaar
Chief Economist

The multi-year recovery of the US economy proceeds apace, with no signs of overheating.

The lack of inflationary pressures should limit the Fed’s leeway to raise rates much further, paving the way for balance sheet management.

Recession signals are also absent for now, pushing that risk out at least 12 to 18 months.

Halfway into the year, let us pause to reflect on the global economic and financial situation. The good news is that many of the risks outlined in our 2017 outlook have abated, buttressing our view that a worldwide recession is not on the horizon.

Lombard Odier won 'Western Europe's Best Bank for Wealth Management' at the prestigious Euromoney Awards for Excellence 2017 on Thursday 6 July – one of the industry’s most coveted awards.

Lombard Odier has been named Western Europe's Best Bank for Wealth Management for 2017 by Euromoney, the leading global financial publication, at its prestigious annual Awards for Excellence.