Edmond de Rothschild Group, the wealth manager founded by the famed European dynasty, is expanding its private banking business in Asia to target the region’s growing list of millionaires. The move comes as some private banks in the region complain that rising costs and growing competition is hurting their business, forcing them to cut costs and keep a lid on compensation.
In its push, family owned Edmond de Rothschild Group has made six senior appointments in Asia, doubling its team of relationship managers to 12, with plans to employ three more people by the end of this year. The group, a scion of the more than 200-year-old banking group, is targeting high net worth individuals and families across Asia and wants to advise China’s expanding group of newly wealthy families on how to pass down their fortunes. It’s no coincidence that the Edmond Rothschild has no branch in India with that country being “left to” their English cousins Lords Evelyn and Lord Jacob Rothschild
Established in 1953, the Geneva based group is chaired by Baron Benjamin de Rothschild, son of Edmond de Rothschild. It has set a target of €158 billion in assets under management by 2016 from around €133 BILLION EUROS assets under management (184 BILLION DOLLARS )currently. Analysts forecast the Asian-Pacific region will have the largest number of millionaires this year, according to a 2013 report by Capgemini and RBC Wealth Management. Wealth in the region has increased by 27% since 2007, the same report said, tipping Asia to overtake North America as the world’s wealth center.
But the growing list of millionaires in China and beyond has attracted small boutique players who are jostling for market share against established heavyweights such as UBS AG and Credit Suisse Group AG Christophe de Backer, Group CEO of Edmond de Rothschild Group, said the company brand will allow it to gain market share. “There is space for an organization like us because we are Rothschild,” Mr. de Backer said. “A lot of the families here have heard about the name,” he added.
Still, growing competition means Asian private bankers produce less revenue than their global counterparts. A study by Accenture found that Asian private bankers generate around $600,000 in annual revenue compared with $1.1 million in North America and $1.3 million in Europe. Some western banks began cutting back their presence in Asian private banking in the wake of the financial crisis as stringent regulatory requirements forced them to keep a higher capital base at home.
French bank Société Générale SA last month sold its Asian private banking business to Singapore’s DBS Group Holdings Ltd. for $220 million. That acquisition came three years after Oversea-Chinese Banking Corp. , Singapore’s second biggest bank after DBS, bought Dutch bank ING‘s private banking operations in Asia for $1.64 billion. And Falcon Private Bank, a Switzerland-based boutique private wealth manager backed by Abu Dhabi’s sovereign-wealth fund, last year exited its Hong Kong operations blaming growing competition and rising costs.
Incidentally Edmond the Rothschild after whom the group is named and the father of Benjamin Rothshcild is known as the “Known Benefactor of Israel ”
He became a leading proponent of the Zionist movement, financing the first site at Rishon LeZion. In his goal for the establishment of a Jewish homeland, he promoted industrialization and economic development. In 1924, he established the Palestine Jewish Colonization Association (PICA), which acquired more than 125,000 acres (50,586 ha) of land and set up business ventures.For his Jewish philanthropy Baron Edmond became known as “HaNadiv HaYadu’a”, (Hebrew for “The Known Benefactor” or “The Famous Benefactor”) and in his memory his son Benjamin (chairman of the group) bequeathed the funds to construct the building for the Knesset.
IN SHORT BENJAMIN ROTHSCHILD A RABID ZIONIST WHOSE FATHER HELPED CREATE ISRAEL IS HANDLING 184 BILLION DOLLARS OF NEW (MOSTLY CHINESE) MONEY