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Lombard Odier broadens its wealth management offering and advisory services in Brazil
Article published on 17 April in Valor Econômico.
Swiss private bank Lombard Odier, which launched operations in Brazil during the height of the pandemic to support offshore investments, is now expanding its scope to include advisory services for domestic assets. According to Managing Partner Frédéric Rochat, the goal is to become a “one-stop shop” for Brazilian clients – offering both access to the bank’s global research capabilities and advisory support for the local portion of their portfolios. But is that enough to compete with Brazil’s attractive bond returns?
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“This is part of our organic growth strategy – our local operations began during the Covid era,” said Mr. Rochat in a recent interview with Valor during a visit to Brazil. “Because of those exceptional circumstances, it took some time to build close relationships with clients and understand what they were really looking for. This initiative addresses the needs of those who are constantly reevaluating how to balance their domestic and international exposure.”
The goal is to become a “one-stop shop” for Brazilian clients – offering both access to the bank’s global research capabilities and advisory support for the local portion of their portfolios
Despite Brazil’s double-digit interest rates – currently at 14.25% – local investors still need guidance, even when building conservative portfolios, said the head of Lombard Odier’s Brazil office, Rogerio Zanin. He noted that there are attractive opportunities not only in fixed income but also in alternative asset classes. “The question clients are asking now is: ‘What risks do I need to avoid in this high-interest-rate environment?’ There’s real demand for that kind of advice, and we know these rates won’t last forever – if they did, Brazil wouldn’t survive.”
Mr. Rochat sees value in offering flexibility: “As we go through different economic cycles, there’s a right time to go international, and a right time to come back.”
Globally, Lombard Odier manages around USD 200 billion in wealth. In Brazil, it operates under a local securities advisory license with a small team of 12 professionals. The bank does not disclose its local performance metrics – “one of the advantages of not being a publicly traded company,” Mr. Rochat adds.
This independence also explains why the bank isn’t looking to grow through acquisitions, unlike fellow Swiss private bank Julius Baer, which entered Brazil via the purchases of GPS and Reliance before selling its local business to BTG Pactual earlier this year.
There are very few institutions that are true long-term investment firms. That’s the only space where we aim to succeed
“We’re always hiring,” Mr. Rochat says, noting that budget is not a constraint – the real challenge is finding the right people. “We’re looking for professionals with a track record in wealth management who have some connection to Brazil. Some of them, wherever they may be, might reach a stage in their careers where they ask themselves: ‘Am I really in the best place to take care of my clients, or is there a better one?’”
Mr. Rochat offered more insight into the kind of profile the bank is looking for: “We’re becoming a compelling choice for senior bankers who at some point want a different kind of model – a platform focussed less on standardisation and more on personalization. Less about selling products, and more about doing what’s truly right for the client, with a long-term perspective.”
He describes the wealth management industry as “very transparent and brutally competitive.” Commercial banks offer balance sheet strength, others leverage investment banking firepower, and some focus on brokerage-driven models. “There are very few institutions that are true long-term investment firms. That’s the only space where we aim to succeed.”
This is a marketing communication issued by Bank Lombard Odier & Co Ltd (hereinafter “Lombard Odier”).
It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication.
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