Edmond de Rothschild AM targets outsourcing

News - 9/4/2018

Edmond de Rothschild Asset Management Luxembourg is changing gears on the Luxembourg market with an entirely new offering. The Swiss group's subsidiary intends to provide smaller managers with portfolio and distribution management tools originally developed for its own institutional asset management services, explains Jean-Michel Lalieu, journalist at Paperjam.

Having spent several years redefining a new business model, Edmond de Rothschild Asset Management Luxembourg (Edram) is now ready to relaunch on new footing.

"Today, thanks to these transformations, we are confident that we can offer unique solutions in our niche across the entire value chain", said Serge Weyland, CEO of the firm since the end of 2017, asked for comment by Paperjam.lu.

Swiss group Edmond de Rothschild, offering both private banking and asset management services, operates in three core regions: Switzerland, France and Luxembourg. "Luxembourg is a very important hub for the group", stated the CEO of Edram Luxembourg.

A new value proposition

The company has been offering its Institutional and Fund Services activities on the Luxembourg market since 1988, which cover AIFM and UCITS management company and back-office services (fund administration and depositary). "We currently service EUR 20 billion in third-party and dedicated funds, and EUR 13 billion in ‘in-house’ funds based in Luxembourg", stated Serge Weyland.

However, in September, Edram will be launching a new offer aimed at small and medium sized fund managers, giving them access to advanced tools fully customized for the needs of institutional asset management.Over the past few years, Edmond de Rothschild developed a portfolio and a distribution management platform based on leading edge technologies for its own needs.. These solutions are now available to third parties.

"We have repositioned our service offering in order to capture an under serviced market"
Serge Weyland - CEO of Edmond de Rothschild Asset Management Luxembourg

"Now, we're offering fully serviced front to back-office tools", explained the CEO. "As such, our offering is aimed at fund managers that handle between EUR 1 billion and EUR 10 billion in assets, and that are therefore often too small to develop IT solutions for their own activities."

The idea, he explained, is that managers can now devote themselves entirely to portfolio management and the development of their distribution networks. All of the operations supporting their business will now be available and handled using the platforms developed by Edram.

"We're nearing the end of a lengthy transformation process rolled out over several years, which has enabled us to better integrate the various group entities", added Mr. Weyland. " We have repositioned our service offering in order to capture an under serviced market." The objective is clear: over the medium term, to double the assets under management in fund services on the Luxembourg market.

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