Rising costs in the funds business is putting pressure on banks. They need a critical mass for their product offering. For this reason, rivals Lombard Odier and Credit Suisse are now working together.
Lombard Odier Investment Managers is assuming assets worth 236 million euros from Credit Suisse’s asset management division, according to a statement released on Tuesday (statement in French).
Lombard Odier will place the assets in a new luxury goods fund called «Global Prestige» which will be sold from June 26, 2018. The assets so far had been managed in Credit Suisse’s global prestige equity fund.
Fund Manager to Join Lombard Odier
Lombard Odier Investment Managers will also hire current Credit Suisse fund manager Juan Mendoza. At Lombard Odier, Mendoza will take charge of the new luxury goods fund.
According to Michel Degen, head of Credit Suisse asset management in Switzerland, Europe, the Middle East and Africa, partnerships such as the one forged between Lombard Odier and Credit Suisse are essential if the sector is to expand further. Cooperation and outsourcing will play an increasing role in the wake of rising costs.
