LUXEMBOURG AND THE UHNW INDIVIDUAL

STEP Benelux – 26th February 2014

Who are we?

» Private bank serving UHNW individuals and families across the world.

» Established in 2009

» 100% owned by entrepreneurial family originating from UK

» Offices in Luxembourg, London and Monaco

» A family office with a banking licence

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Why did we set up a bank?

» Response to the global financial crisis – “a safe bank”

» Gap in the market for premium service

» Support family office activity

» Build legacy for the family

» Respond to the changing needs of UHNW people in the current environment

Professional and personalised assistance beyond traditional asset management

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«The new normal»

» Volatile asset markets

» Low economic growth rates

» Recession in Europe

» Emerging markets (China, Brazil)

» Growing tax, legal and compliance pressures

» More access to information ; more sophisticated.

» Globalisation – international families

UHNW families have complex needs in a changing environment

RBC World Wealth Report 2013

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Who are the UHNWs of today?

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Top 5 industries %

Finance, Banking & Investment

22.0

Industrial Conglomerates 5.2

Real Estate 5.0

Non-profit & social organisations

4.8

Manufacturing 4.7

Most significant industries of self-made UHNWs

UHNWs are increasingly entrepreneurs and business owners – more sophisticated, demanding and more complex needs.

UHNW needs and expectations from wealth advisers

» Single point to assist in managing different critical activities (e.g. wealth

preservation, tax)

» Holistic approach – from structuring to implementation

» High level of service and responsiveness

» Co-ordination role – to deal with different service providers

» Control and risk management

» Due diligence support

» Efficiency – cost management, user friendly, secure

» Discretion, loyalty from staff – trust and confidence – managing a family.

» Innovation – philanthropy, art investments, use of technology

» Ability to deal with anything…?

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Factors for UHNWs to consider when selecting a jurisdiction

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Why Luxembourg?

» International environment – multi-lingual and multi-

cultural

» Location – heart of Europe

» Small country – pragmatic and reactive government,

regulator etc

» Financial centre of excellence and expertise –

access to top service providers

» Wealth management tool box – attractive tax regimes

» Safe haven for assets – political and economic stability

» Innovative – Freeport, Foundation, IT

A platform for growing our private banking business…

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Specific Opportunities: SICAV-SIF

» A flexible vehicle which allows both traditional financial assets, private equity and real

estate as well as collectible assets (art, jewellery, cars, horses, watches)

» Can be used as a tool for:

o Active investment management

o Estate Planning

o Asset Protection

» The SIF is targeted at the following:

o UHNW individuals and families

o Family Offices

o International wealth planners, among others who are looking for an alternative estate

planning solution for their client base.

» Fund managers and other institutional investors.

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Specific opportunities: New Markets Brazil & China

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