We discuss with Cédric Weisse, Head of Individual Markets at BIL regarding our commitments for Wealth Management clients.

BIL Wealth Management team advises wealthy clients in all kinds of economic environments. We steer them through shifting regulatory landscapes, adjusting plans to meet changing needs and circumstances. In brief, a private banker helps clients manage all their assets. Our role is to build a clear strategy that protects a client’s wealth for future generations. Private bankers are always at their clients’ side, dealing with complex, unique financial situations.

In some cases, assets may be held in multiple jurisdictions with real estate located around the world for instance. In others, companies and business interests may be registered overseas. A private banker must fully understand every aspect of a client’s wealth; their short, medium and long-term goals. They must also establish a clear view of their client’s risk profile. Only with this depth of knowledge can private bankers present truly tailored solutions. There is no ‘one size fits all’ in wealth management and that’s what makes it so interesting.

Wealth Management has a wide-ranging remit. Generally, it focuses on areas such as structuring, managing and transferring significant wealth. Such is the scope; private bankers must have access to a full range of specialist services. These services include investment advice, succession planning and discretionary portfolio management and so on.

However, BIL also offers its wealth management clients everyday banking activities, for both personal and corporate accounts. So, moving funds between accounts, setting up direct debits or processing credit and card facilities. Every aspect of our private clients’ finances, from simple banking transactions to complex structures is managed by a dedicated private banker. And that’s an important difference between a boutique wealth manager and the private banking offer of a multi-business bank such as BIL.

Close relationship and short approval lines

At BIL our decision centre is in Luxembourg and our specialists are all inhouse and on hand. This means that our approval process is short, queries are turned around efficiently. Speed of response is very important to our clients - they want clear answers quickly. And we understand their needs. We are on the ground in Luxembourg, working in the same environment, seeing the same market trends and movements. That local knowledge is a big advantage.

Wealth Management sector in Luxembourg

Luxembourg’s wealth management industry is today firmly established as a core professional service for both high-net and ultra-high-net worth individuals. In fact, it enjoys a particularly impressive share of ultra-high-net worth individuals. A Deloitte study from 2019 shows that 76 % of private clients’ assets under management were attributed to individuals each with total wealth in excess of €5 million.

Luxembourg is one of the leading European private banking hubs. It’s seen as a very attractive location for those seeking comprehensive wealth management services. The country’s economic and political stability, along with its highly developed financial and professional services eco system are big pull factors. A recent KPMG report states that assets under management in Luxembourg’s private banking sector stood at €508 billion in 2020 – that’s a 100% increase over 12 years.

New priorities for Wealthy clients

Over the past decade or so we have seen affluent individuals re-evaluate how they manage their wealth. Parking it in bonds or equities no longer reflects their changing wealth management goals. But new solutions to protect their wealth began to emerge. Greater asset diversification offered attractive alternatives. Real estate, investment funds or even private equity became a growing part of the wealth management toolbox. Meanwhile, banks were rapidly expanding their list of products and services. International mortgages, tax planning possibilities and investment advice began appearing on their menu. Opportunities for a more personalised approach to wealth management appeared and private banking really began to boom.

The Covid pandemic turned so many of our preconceived views upside down. How we work, travel, communicate, conduct business. And in wealth management we are seeing changing priorities again. Generally, our high-net and ultra-high net worth clients seek to protect their assets while keeping an eye on liquidity. In times of uncertainty, and it is clearly still the case, liquidity becomes a significant priority for many. Likewise, stability and flexibility.

But Wealth Management is an active process, built to respond to changing circumstances and different scenarios.

BIL Wealth Management Luxembourg Charter

Download the BIL Wealth Management Luxembourg Charter

Trust
We are given exceptional insight into our clients’ complete and often complex financial position. We are trusted with personal information, private situations and family considerations. It is this confidence in our discretion and our ability to respond to all scenarios, both professional and personal, that builds trust.

Expertise
We want our wealth management clients to be confident that experts are on hand to respond to any changes in circumstances or priorities. This might involve tax assessments, investment advice, financing, wealth engineering. Estate planning may also need to be revised. But our expertise extends also to understanding the impact of the macro-economic environment. We know our clients’ needs but we must also fully understand the economic backdrop in which we are operating.

Close relationship
Trust and close relationships go hand in hand. Only by building trust can we really get to know and understand our client. Not just our client, but their family too. We might meet other family members who work in the family business, or they may come along to our client meetings. By getting to know the wider family, we can build a clear picture of the overall family dynamics. Building such a close relationship with our clients can help shape our decisions and solutions. Are family relationships stable, or does potential volatility lie ahead? Do siblings share a similar outlook, or is disruption on the horizon? Have the right succession planning steps been taken? A close relationship can help us answer these questions and many more.

Tailormade solutions
Tailormade solutions flow directly from the first three pledges – trust, expertise and close relationships. These capabilities are the cornerstone of all our client activities and decisions. They allow us to design individual solutions for individual circumstances. In addition, our comprehensive market knowledge helps us offer clients a wide selection of options and outcomes. Each tailored to meet their specific needs.

ESG - environmental, social and governance
Sustainability has been propelled to the top of many global agendas. Companies and investors are actively seeking to promote their ESG credentials. At BIL, we are fully committed to embracing ESG values. Responsible investment can help build a more resilient, sustainable world without sacrificing financial returns. ESG considerations touch every aspect of our offering, shaping our decisions and advice. It’s also something that is very important to our clients – they want to make a positive impact on the environment and society. They want their wealth to help support a brighter future for the generations to come. And wealth management professionals can all play an important part in fulfilling those wishes.

A wide range of services: investment

Like all our wealth management solutions, our investment advice is designed to meet each client’s specific needs. Some may wish to manage their own investment portfolio and make their own investment decisions. They may also however value the support of a professional investment specialist. This gives them proactive advice from an expert scanning the market for opportunities that align with their profile. This advisory service is run by the bank’s internal financial committee and brings together specialists from across the investment spectrum.

Our discretionary management service allows clients to work with a BIL investment specialist. They will analyse each client’s situation and identify an appropriate investment strategy. This discretionary management service can offer real peace of mind. Clients are reassured that investment decisions are fully aligned with their overall objectives and risk profile. Whether advisory or discretionary management, our private banker works alongside their clients to identify the right route for them.

With a trusted relationship, we work in partnership to deliver individual solutions for our clients’ unique needs. That’s BIL Wealth Management in a nutshell.

Contact our private bankers to know more about how we can support you.