The Swiss private bank EFG International responds to growing geopolitical uncertainties by establishing a new London team aimed at targeting Asian clients. The background is the increasing willingness of wealthy investors from Asia to move their wealth management from the USA to Europe— a trend that is gaining additional momentum due to the escalation of the trade conflict under US President Donald Trump.
Asian clients, who until now mainly invested in the USA, are increasingly looking for alternatives in Europe," said EFG chief Giorgio Pradelli. "Private banking is essentially a matter of geopolitical risk diversification – it is always about stable havens.
The new team is expected to start in the summer under the leadership of Oliver Balmelli, currently Deputy CEO of EFG in Singapore. It will grow to up to ten people – through internal transfers and external new hires. According to Pradelli, EFG is not aiming for a specific amount of assets under management with the new unit, but refers to similar initiatives in the past that acquired assets of around three billion Swiss francs in the first three years.
London asserts itself as a global financial center despite Brexit – according to a Deloitte survey, the British capital is the world's second largest location for international wealth after Switzerland, with managed assets of 2.2 trillion US dollars. The decision by the Bank of Singapore to close its Luxembourg office and focus on London also underscores the importance of the metropolis.
“Brexit has created certain hurdles, but London remains highly attractive for wealthy clients from the Middle East, Far East, Europe, the USA, and increasingly also Latin America,” said Pradelli. The British financial center benefits from its global reputation for offering stable legal frameworks and excellent infrastructure.
With this step, EFG follows other Swiss institutions such as Julius Baer, UBS, LGT, and Pictet, which have established or expanded Asia desks in recent years — partly in London, partly at their home location. The asset managers are responding to the desire of Asian clients to find new anchor points for their assets in an increasingly fragmented geopolitical environment.
