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32
Rothschild & Co | Annual Report 2017
Rothschild Private Wealth & Asset Management
Rothschild Private Wealth
Rothschild Private Wealth provides a comprehensive range of services to some of
the world’s wealthiest and most successful families, entrepreneurs, foundations
and charities. In an environment where short-term thinking often dominates,
our long-term perspective sets us apart: we believe preservation-first is the right
approach to managing wealth.
We understand the issues wealth owners must address and can help them protect their assets. We advise our clients in
relation to all their financial and non-financial wealth. When helping our clients invest, we aim to deliver inflation-beating
returns and dampen volatility.
We have the scale, intellectual capital and resources to deliver, whilst still being able to provide a truly personal service. Our
distinct perspective makes us a secure and enduring home for our clients’ assets, safeguarding their legacy for generations.
We provide lending in Private Wealth (total loan book €2.8bn at December 2017) including private client lending (€2.4bn at
December 2017) such as loans secured on clients’ investment portfolios and mortgages secured on clients’ residential real
estate; and other lending (€0.4bn at December 2017) such as loans to clients’ businesses. Lending is complementary to our
investment management, wealth planning and administration services, and enables us to meet the wider private banking
requirements of our clients.
Looking ahead, we believe our Private Wealth division is well placed to meet the challenges our industry faces. The demand
for our advice-based, unconflicted business model, with stable and multi-generational family ownership makes us truly
distinctive in a crowded market. We continue to invest in our infrastructure and high-calibre people who work with clients
to become trusted advisers. Over the next few years, we expect to see continued growth with a sustainable improvement
in our profitability as we gain scale.
Rothschild Martin Maurel
Rothschild Martin Maurel combines the Group’s private banking activities in France, Belgium and Monaco.
2017 saw the successful completion of the plan to combine
the French private banking activities of Rothschild & Co and
Compagnie Financière Martin Maurel to create one of the
leading private banks in France. This merger reflects the
Rothschild & Co Group’s aim of expanding in private wealth
management. The new entity, which operates in France
under the name Rothschild Martin Maurel, retains an
entrepreneurial spirit and a human scale, enabling it to
remain close to its clients.
Rothschild Martin Maurel is a major independent player
in private banking in France, Belgium and Monaco, with a
differentiated positioning focusing mainly on entrepreneurs.
It can now leverage the complementary expertise of the two
groups and expand its range of services to encompass a
full corporate banking service for family SMEs (including
transactional banking, lending, etc.), an improved and more
diversified lending capability (wealth management, corporate,
real estate) and expertise in supporting real estate businesses.
The model is based on two core businesses, wealth
planning plus corporate banking services for family
companies. The teams are now structured on a regional
basis, in line with the Group’s geographical mix, while
maintaining a national dimension covered by the business
line heads (Private Banking, Fund Management, Wealth
Planning and Corporate Banking), with access to the rich
capabilities of Rothschild’s worldwide network.
At 31 December 2017, assets under management stood
at €21.2 billion versus €11.1 billion one year earlier, driven
by the merger with Martin Maurel, strong net inflows and
a positive market effect.
This strong asset growth bears witness to the successful
integration of the two groups’ front office teams, whose
ability to develop new business has not been affected by
the merger process. On the contrary, they have now begun
to harness synergies between the Group’s various business
activities, which will be even more visible in 2018.
In parallel, the information systems integration continues
according to plan, with unified front office systems due to
come on stream in the first half of 2018 and a single
banking system in the second half.
€21.5bn
of assets
managed by
RothschildWealth
Management
& Trust
€21.2bn
of assets
managed by
Rothschild
Martin Maurel
€1.3bn
of net new assets
in 2017 in Private
Wealth