As CEO of Abrdn in Switzerland, Karsten-Dirk Steffens has radically realigned the Scottish asset manager in the country.

With longtime ex-UBS executive René Buehlmann, Scottish asset manager Abrdn has a CEO at the helm of its investment department since May 2023 who has a strong connection to Switzerland. He's also a Swiss citizen.

He's considered experienced, and charismatic with a vast network of contacts, especially in Asia, where worked for many years until recently. This fits in well with Abrdn's strong presence in this region where he has the greatest expertise thanks to Hugh Young, a pioneer in Asian investments.

Opening Doors

Abrdn's presence in Switzerland has taken on a special role, as country head Karsten-Dirk Steffens notes in an interview with finews.com, who said Buehlmann is best at opening doors for the firm. Abrdn Switzerland needs to be seen as not merely an offshoot of the Edinburgh-based group, but an independent Swiss company with its book.

That Abrdn special position to survive and thrive in the local market, says Steffens, who in his Swiss role is responsible for 9 billion Swiss francs ($9.8 billion) of client assets, half of which are mandates, and the rest in wholesale distribution through other financial institutions.

Standing Still is Death

In contrast to other large asset managers in Switzerland, he doesn't see his company as a one-stop shop, but as a specialist in selected investment topics where it has a demonstrable competitive advantage with specific know-how. In addition to its expertise in emerging markets are global credit, sustainability, and private- and emerging markets, he says. Abrdn wants to occupy and develop niches because «standing still is death,» Steffens continues.

He realizes it's the only way Abrdn can differentiate itself from the overwhelming competition, and hopes that specialization will improve Abrdn's market position with pension funds, banks, and other institutional investors, who perceive Abrdn as competent in those areas which wasn't always the case.

Physical Presence Counts

Abrdn in Switzerland is now in a position to take on mandates of up to 400 million francs specializing in specific asset classes.

But there's more to it, adds Steffens. «Pure fly-in» from London, doesn't work anymore where asset managers servicing a local market from another financial metropolis. Today, physical presence is important to successfully serve a market, and Switzerland is an important one.

A Sharp Red Pencil

Steffen has been with Abrdn for four years and initiated a realignment a year and a half ago. The newly appointed CEO applied red pen which led to massive savings. A more or less new team of six employees is now more or less new and has a person based in Geneva handling French-speaking Switzerland, which accounts for about a third of the book.

«We now have a face in the Swiss market,» Steffens notes. The company has been able to raise its profile through its collaboration with Conser, a Geneva-based company that investigates ESG compliance in investment funds.

Demands Growing Daily

This service allows Abrdn to ensure that financial products labeled green are truly sustainable. Steffens notes that it's often the little things that set one apart from competitors, not least in light of much having changed among pension fund decision-makers and other employee benefits institutions.

The demands on sustainable portfolios are growing almost daily. At the same time, the standard offerings of the various asset managers are becoming increasingly similar.

Little UBS and Credit Suisse Overlap

Steffens is closely following Credit Suisse's integration into UBS, with a particular eye on asset management. He sees an overpowering competitor growing there and observes the overlap in the recommendation lists for the funds of the two firms is only about 20 percent.

At the same time, he admits recent developments in the Swiss financial industry mean that other distribution platforms such as Allfunds, Clearstream, or MFEX are becoming increasingly important. The more profile Abrdn has with its offering, the greater the likelihood of gaining market share in the highly competitive asset management business, he says.