The success of Luxembourg’s financial center with private clients continues to strengthen year after year. This is evidenced by the increase in assets managed by independent managers and insurance companies, deposited in Luxembourg’s banking institutions, such as Banque de Luxembourg.
“We have indeed observed strong growth in the independent asset management sector in recent years,” comments Jean Demuth, Head of External Asset Managers, the department that provides private banking services to independent managers at Banque de Luxembourg. “In the custodian banking market, the volume of assets managed by third parties now approaches €60 billion, steadily rising over the past several years.”
An Attractive Financial Center
This success largely relies on Luxembourg’s robustness and the trust that private investors place in this international financial center. “As political uncertainty rises in neighboring countries, Luxembourg stands out for its political, economic, and regulatory stability. With its AAA credit rating and public debt at just 27% of GDP, the country fosters a strong culture of investor protection,» explains Florence Winfield-Pilotaz, member of Banque de Luxembourg’s Executive Committee in charge of Asset Servicing. «Investors are also drawn to Luxembourg for its recognized expertise in wealth management and its ability to provide structuring solutions tailored to a wide range of needs.”
With over a century of experience, Banque de Luxembourg has always supported its clients over the long term, delivering tailored solutions that serve their best interests
Dedicated Services for External Asset Managers
To adapt to market developments, Banque de Luxembourg has crafted a tailored offering for independent managers. The external asset managers can deposit their clients’ assets in the Grand Duchy, benefiting from the solidity of Luxembourg’s financial center while accessing a comprehensive private banking platform.
“Our ambition is to support the growth of this activity by positioning ourselves as a key partner for independent managers. With our century-old private banking DNA and more than 40 years of experience in asset servicing, we provide them with expertise and high-value-added services,” assures Jean Demuth.
Currently, the assets deposited at Banque de Luxembourg and managed by third parties amount to €11 billion. Approximately 120 independent managers rely on the services of the custodian bank.
“Each of them can count on the solidity of our institution as a subsidiary of Crédit Mutuel. In a sector marked by significant consolidation trends, we stand out for our independence and the historical stability of our operations. Additionally, our clients benefit from our IT solutions, ensuring smooth exchanges, swift account openings, and rapid order execution,” adds the Head of External Asset Managers.
Dedicated banking platforms
Each external asset manager has acces to a comprehensive range of private banking services and products, as well as dedicated platforms designed to simplify their daily work. These platforms enable digital account opening for private clients, provide both individual and group consultation of transactions and positions, and support single and bulk order transmission.
“We are fully committed to enhancing our services with new digital solutions, ensuring that our partners experience even greater efficiency in their daily operations,” continues Jean Demuth.
The assets deposited at Banque de Luxembourg in this context mainly come from European private clients. They can also include funds linked to a Luxembourg life insurance contract, also managed by third parties.
It is worth noting that, since 2010, Banque de Luxembourg has operated a branch in Belgium. Belgian clients can thus benefit from all these services for deposits made in accounts in their home country.
Tailored solutions, lasting partnerships
“We offer external asset managers and their clients a comprehensive range of services, from tax reporting and automated access to our trading desk—now open until 10 pm—to digital account opening via our platform,” adds Florence Winfield-Pilotaz. “Our solutions are designed to help clients save time and focus on what truly matters.”
“Equally important is our commitment to service excellence. As a niche player, we invest heavily in training our teams to ensure a highly personalized approach and long-term relationships with our clients. By doing so, we enable them to concentrate on their core mission: creating value for their private clients.”
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