Success factors

The 2018 business year was characterised in the Private Banking segment by robust growth. Private Banking at the LLB Group always keeps three factors at the front and centre of attention: stability and security, the high level of service quality, and outstanding investment performance.

Stability and security

The LLB Group has been one of the most secure and best capitalised universal banks in Europe for years (see chapter “Finance and risk management”). With 157 years of history, LLB has a long tradition as a private bank. It has a Moody’s Aa2 long-term rating, meaning that we are among the top rank of banks in Liechtenstein and Switzerland. Moreover, with the Principality of Liechtenstein as our majority shareholder we have a stable ownership structure. Liechtenstein is one of the very few countries in the world to possess an AAA rating with a stable outlook from Standard & Poor’s. The country rating for the financial centre is an indicator of stability and reliability.

High level of service quality

Our advisory services are systematically structured and clearly understandable for our clients. They decide how closely they want to be cared for by their client advisers and what risks they want to assume. The spectrum ranges from “execution only” models to comprehensive asset management. Clients can select the investment strategy from the categories “Fixed Interest”, “Conservative”, “Yield”, “Balanced”, “Growth” or “Equities”. Thanks to computer-assisted, continual supervision of the portfolios, our private banking client advisers can monitor the security of the investments and performance in line with the investment strategy. To ensure the quality of our advice, we continually invest in our products and staff. Our client advisers have to complete the certification programme in accordance with the standards of the Swiss Association for Quality. In the meantime, 38 private banking client advisers of LLB Liechtenstein and Bank Linth have successfully completed the certification programme (see chapter “Employees”). Our good ranking in the Fuchsreport TOPs 2019 also confirms the high quality of our private banking advisory team.

Support from technology

In continually analysing and monitoring client portfolios, our client advisers and analysts are supported by the latest technology. Highly efficient programmes use sophisticated algorithms to calculate the return and risk assessment of individual financial instruments in order to enhance portfolio efficiency. Individual targets and restrictions are automatically considered. If the risk / return characteristics of an investment do not fulfil the client’s criteria, the software flags up an alert. Thanks to the LLB’s advanced mobile and online banking applications, clients have an overview of their assets at all times.

Transparent pricing model

All the companies in the LLB Group forego retrocessions both in the provision of investment advisory and asset management services, i.e. LLB does not accept commissions from external investment fund vendors for the distribution of their products to the bank. We transfer 100 per cent of these payments to our clients. In Liechtenstein, LLB is the only bank, and in Switzerland one of the few banks, to deploy a pricing model devoid of retrocessions in its asset management and investment counselling services. We utilise performance-related fees with various funds, as well as with asset and discretionary management mandates, which are only payable if a positive return is achieved. Our interest-related fees are another innovative feature, which take into account the low levels of interest rates. LLB’s tariff structures are simple and clear, costs are visible at a glance.

Outstanding investment performance

The Private Banking Division is supported by the specialists of LLB Asset Management, whose investment performance in competitive comparison is outstanding. The international awards, which LLB has received in 2018 and in previous years (see chapter “Institutional Clients”), confirms this. The investment selection process for the portfolios follows the proprietary, multi-award-winning “Quant-Value” concept. As active managers, our Asset Management specialists are guided by benchmarks – with the goal of exceeding them in our own numerous funds and mandates. This applies both in asset management and for investment funds. As a further means of assuring quality, we continually invest in technology and the training of our investment experts.

In 2018, the LLB Group expanded its range of products by offering passive asset management mandates with various investment strategies and passively managed equity funds.