The Institutional Clients Division encompasses asset management services as well as business with financial intermediaries and external asset managers in Switzerland and Liechtenstein. We are one of the three largest providers of fund services in Liechtenstein, and deliver discerning institutional clients efficient solutions from one source.
We also play an important role as a custodian bank. For instance, we support fund managers in designing and launching traditional and alternative investment funds. Special funds offer investors a regulated but highly flexible product customized to suit their individual investment wishes. These capital investments are steadily gaining in economic importance. The Institutional Clients Division achieved operating income amounting to CHF 124.1 million in 2012. This corresponds to a share of around 30.4 percent of the LLB Group’s total earnings.
Access to the European market
Access to the European market is crucial for the competitiveness of the Liechtenstein financial centre and therefore for the Institutional Clients Division of the LLB Group. In this context, the EU has implemented an array of new legal provisions. For example, by 21 July 2013, the EU/EEA member states must have incorporated the directive concerning alternative investment fund managers (AIFM) in national law. In future, whoever wants to manage a fund for alternative investments in or from out of the EU, or distribute funds to investors, must have a license as an AIFM. They must also provide evidence of business substance and competence, and fulfil strict requirements. In 2013, Liechtenstein will be able to grant an EU-wide license for managers with domicile in the EU.
Liechtenstein is one of the first jurisdictions to be able to offer its clients a functioning, efficient and AIFM-compliant environment, and therefore legal certainty. This will provide the LLB in future with the added opportunities to launch mandates for hedge funds, private equity funds, real estate and commodity funds. It can be assumed that, when granting new mandates or making fund investments, in future institutional investors and also family offices will make the manager’s AIF strategy an important criterion in their selection process. On the basis of the new law concerning the management of alternative investment funds, foreign managers can establish a business substance in Liechtenstein and carry out business activities in the European Economic Area.