Rothschild & Co Bank CEO Laurent Gagnebin tells finews.com why the Swiss wealth manager pulled out of Hong Kong and what he is advising clients do amid a market rout induced by the coronavirus pandemic.

Laurent Gagnebin, what are you telling clients amid coronavirus?

We expect considerable volatility in coming weeks and are cautious. Our investment strategy is fundamentally a long-term, cautious one. That's helped us in recent days and weeks. We're now trying to identify buying opportunities in stocks which look overvalued a few weeks ago. 

You decided to shut Rothschild’s office in Hong Kong last year. Why?

The decision was a logical consequence of our strategy to focus wealth management on the successful onshore centers in Europe. These including Switzerland, Germany, the U.K., and Italy. We look after Asien clients with a team out of Switzerland.

What promise does wealth in Asia hold for Rothschild – and how do you want to tap it?

Of course Asia is a very interesting market for private banks. However, we believe that a bank of our size needs to focus. In wealth management, we have clear strengths and critical mass in Europe.

«We're looking mainly for organic growth – and hiring»

Nevertheless, we can still be a very good option for Asian clients who are looking for a certain geographic diversification. Asia remains important for all of Rothschild & Co, including with the strong presence of our global advisory group.

Can you detail your strategy in Switzerland vs your international plans?

We want to continue our organic growth in all markets. In Switzerland, investments in recent years form the basis to further expand our investment expertise and our client-facing capacity.

«We've invested continuously in technology for better advice»

We have also continuously invested in our technology to better advise clients. Our focus in on strengthening our advisory offering and portfolio mandates for Swiss clients. We're also cautiously expanding our lending offering in Switzerland.

Rothschild’s business in Geneva stands out. What’s the secret there?

We made a lot of changes eight years ago. Since then, we've invested considerably in experienced private bankers and in a local investment team, which is paying off for us.

«Rothschild, the name, is very tangible in Geneva»

The Rothschild name is also more present in Geneva, which makes it slightly easier to win clients. I still see growth potential for us in Geneva.

What new client segments would Rothschild like to tap?

We're the right home for wealthy private individuals and entrepreneurs who want to take a long-term view. We're about preserving and multiplying existing invested assets.

«Clients may want to invest alongside the Rothschild family»

We're also well-connected in the start-up scene, where we can bring our clients together with exciting, innovative new companies. We're also interesting for clients who want to invest their money alongside the Rothschild family in private companies.

What is your net hiring number of private bankers last year?

We hired ten new client advisers last year, spread across Germany, Geneva, and Zurich.

How are Rothschild’s digitization plans coming along?

We view digitization as an instrument to complement and improve how we advise clients. We've invested quite a lot in this and in our processes in recent years.

Tell me about a specific digitization initiative – preferably a client- or outward-facing one

Last year, our focus was expanding our advisory platform. This supports our private bankers with more efficient processes, less administration, and more easily available information and reporting.

«We'll keep expanding our lending book»

This leaves them with more time to advise their clients – which is central for us since our bankers only have roughly 30 clients each.

What are Rothschild’s growth targets for this and next year?

We don't disclose growth targets, but we're looking to grow organically in all our core markets and will continue to hire experienced private bankers who share our long-term investment views. We're also bolstering our know-how in private markets, a segment which offers interesting investment opportunities for us. We'll also continue to expand our lending book.

Laurent Gagnebin joined Rothschild Wealth Management Equitas, the Genevan arm of Zurich-based Rothschild, in 2011. Prior to that, the 43-year-old ran Investec Bank in Geneva. He got his start in finance at Goldman Sachs in Switzerland, after working in the luxury hospitality industry for several years following his education at the École hôtelière de Lausanne. He took over as head of Rothschild Bank in Switzerland in 2016.