Swiss Institutes Among Biggest Family Offices

A new study shows the most popular banking institutes catering for the needs of super rich families – the family offices. Among the top 10 are two Swiss banks, while a largely unknown wealth manager from Geneva is quickly catching up.

The business with rich families is expanding across the globe and financial services companies are scrambling to attract these 'Ultra High Net Worth Individuals'. Asia has become a particular focal point for this banking segment. In 2008, some 50 family offices existed on the entire continent. By 2012, the figure had quadrupled, the «Financial Times» reported (by subscription only). By contrast, the U.S. has some 3,000 family offices, Europe 1,000.

«Bloomberg News» compiled a ranking of family offices, showing which attracted the most money. HSBC Private Wealth Solutions topped the list for a third year running, with $160 billion in assets under management. The unit had 340 families under contract.

Swiss Family Offices

Two Swiss banks made it to the top 10. UBS took 6^th place with $78 billion, an increase of 10 percent year-on-year. Pictet, the 8^th placed in the list, had rather sluggish growth in the past year with an increase of 4 percent to 57 billion. The bank in 2013 ranked fifth, above UBS. Switzerland's biggest bank has some 250 families under contract, Pictet about 150.

Bedrock, a Geneva-based wealth manager, is catching up quickly. The institute increased assets under management to $9 billion from $6 billion within two years, earning it the 25^th spot in the «Bloomberg News» ranking.

Bedrock Surges

Bedrock was founded by Maurice Ephrati, David Joory, Sandy Koifman and Ariel Arazi in 2004 and has offices in London and Monaco. The company employs 95 people.

Two more Swiss companies made it into the top 50: ATAG Private & Corporate Services from Basel (ranked 27^th) and 1875 Finance from Geneva (ranked 32^nd).

FS Finance Suisse and Marcuard Family Office, both from Zurich, dropped off the list. Credit Suisse doesn't figure either, but has plans to up the pace in this customer segment.