Credit Suisse’s inability to master a difficult situation on its own continues to surprise many clients, Andreas Luder, CEO of asset manager Lumen Capital says in an interview with finews.com. Many are asking themselves what options are available to reduce risk.
Andreas Luder, after more than 25 years at UBS, you became self-employed a year ago. You are now a partner and CEO of the newly founded financial boutique Lumen Capital in Zurich. What made you take the plunge?
I had already harbored the dream of entrepreneurial independence as a student. Over the past few years, I channeled this dream into a concrete goal. Last year, the necessary components came together to make the decisive step: the right partners, the right setup, and the great encouragement from my entourage.
As an entrepreneur and co-owner of Lumen Capital, I can now stand by our clientele and act as an independent consultant and acquire suitable holistic solutions. I am no longer a product salesman. Now I can respond individually to the needs of our clients and offer them a very personal service, without having to consider internal, bank-specific sensitivities.
That's what everyone says - both the banks and the independent asset managers. This still hardly distinguishes you from the competition.
Three core elements distinguish Lumen Capital's DNA: firstly, a 360-degree client view. We look after our clients' holistic interests and treat their financial affairs as if they were our own.
«Our portfolio managers in Asia give us a unique differentiator from our competitors»
Secondly, an interdisciplinary team of advisors and investment specialists who work hand in hand with the interests of our clients. Our portfolio managers in Asia also give us a unique differentiator from our competitors.
Thirdly, a wealth of knowledge and experience in capital markets and in serving high-net-worth individuals. We also benefit from the experience of our chairman, Wilfried Kofmehl, founder of Lumen Capital Investors (LCI), an independent asset manager and multi-family office in the booming financial centers of Singapore and Hong Kong for more than twelve years.
We also benefit from the forty-plus years of wealth management and private markets experience of our board member, Nick Pfau.
Speaking of banks, how have your clients reacted to the downfall of Credit Suisse as an independent bank?
Differently, but basically with great regret that such a historic banking institution active internationally did not succeed in mastering the difficult situation on its own. At the same time, customers are concerned about the security of their current custodian banks and are asking themselves what options are available to minimize risk.
And what did you tell them?
We have tried to address all questions and concerns and to advise our clients in the best possible way. We also emphasized that, as an independent asset manager, we are not affected by the crisis surrounding Credit Suisse and can continue to offer our services in high quality.
How badly has the Credit Suisse debacle affected the reputation of the Swiss financial center?
The downfall is indeed a sad development for the financial center and the many employees of the bank. In the short term, I do think that the reputation of Switzerland as a banking center has been affected. In the medium term, however, the focus may quickly shift back to other issues.
«It will take a lot of time and be a rocky road»
It will be crucial to clean up the case and draw the right conclusions. I hope that there will not be a new wave of additional regulations now. That would not help the financial center. I still see great potential for the Swiss financial center in the coming years, however, not least because of political developments in other regions of the world, such as Asia. China is putting increasing pressure on financial centers such as Hong Kong and Singapore.
What is your forecast for the future of UBS and Credit Suisse?
I am convinced that the new UBS management will succeed in putting together a convincing Swiss global player. But it will take a lot of time and be a rocky road.
Will you now hire client advisors from Credit Suisse?
That is not out of the question. But at the moment we are not in advanced talks. We only started a little over a year ago, after we received our Finma license. Since then, we have seven employees and already manage client assets of more than one billion francs.
It is also important to us that we are joined by people who fit in with us, represent our values, and want to achieve something entrepreneurially. We want to deliver top performance as a team, but we also want to have fun together. And we assume that there will always be client advisors from larger banks who find working for an independent asset manager attractive.
What are your priorities as a client advisor?
As a passionate tennis player, I have the sporting ambition to achieve the best for my clients. I can bring several qualities from tennis that are useful in my job as an asset manager.
For example, strategic thinking to analyze the strengths and weaknesses of opponents, a quick reaction time to respond appropriately to market changes, and good stamina in difficult situations.
«It's a matter of keeping a constant eye on the goals»
For each client, I create a customized wealth concept that is aligned with the defined investment goals. After that, it is a matter of keeping a constant eye on the goals and working consistently to achieve them. It is also crucial to act flexibly, comprehensibly, and transparently toward the customer.
What does that mean in practice?
I can sum it up in four points: We ensure the high quality of our advice. We have developed a flexible investment process so that we can react quickly to developments. We have a broad, open platform to offer adequate solutions. And we attach great importance to efficient processes and digitalization.
Andreas «Andy» Luder has been CEO and Partner of Lumen Capital (Switzerland) since June 2022. Previously, he worked for UBS for many years, including three years in Singapore at the beginning of his career. He then worked in various roles in UBS Wealth Management. He holds a Master's in Economics from the University of Zurich and is a certified Wealth Management Advisor for the Swiss market. Zurich-based Lumen Capital (Switzerland) is independent and holds a license from the Swiss Financial Market Supervisory Authority (Finma) as an independent asset manager since May 2022.
