Union Bank of the Philippines, the banking unit of the Aboitiz Group and the tenth largest lender in terms of assets, signed a cooperation agreement with Europe-based Bank Lombard Odier & Co. Ltd. for the launch of a global and diversified multi-asset fund in the country.
UnionBank said in a disclosure to the stock exchange Wednesday it signed the agreement on Aug. 16, 2016.
“The agreement will see the launch of a global and diversified multi-asset fund with a risk profile matching UnionBank’s specific needs for its high-net worth and ultra-high-net-worth clients,” UnionBank said.
Lombard Odier is a leading global wealth and asset manager with $224 billion in total client assets as of end-December 2015. It was founded in 1796 in Geneva, where it has its headquarters.
Information on its Web site said the fund manager, which has been a family business for seven generations, was run by its partners.
The fund, which is present in all major financial centers in the world, has a network of 26 offices covering 19 jurisdictions and employs around 2,180 people. Lombard Odier has decided to accelerate the development of its private client activities in Europe, Asia and Switzerland, strengthen its asset management services, and make its technology platform available to finance professionals.
Lombard Odier offers its private clients a range of wealth management solutions such as portfolio management under a discretionary or advisory mandate, succession planning, tax reporting, or custody services.
Earlier, UnionBank president and chief operating officer Edwin Bautista said the bank was seeking to further improve its products and services “that take on a more customer-centric approach.”
The bank in the first half of 2016 posted a 30-percent increase in net income to P3.9 billion from P3 billion a year ago on the strength of its core businesses.
Net interest income jumped 30 percent to P7.3 billion as a result of the year-on-year expansion in loan portfolio, while fees-based income grew 11 percent to P2 billion due to an expanded customer base in both loans and deposits.
The bank’s lending activity rose 12 percent to P202 billion, while total deposits rose 8 percent to P336 billion. UnionBank’s assets stood at P439 billion as of end-June.
The bank earlier said it was spending P1 billion for capital expenditures this year. It plans to spend the bulk of the amount for the bank’s digitalization efforts, and the balance to expand its current network of 300 branches.
Through its branch LOIM (Lombard Odier Investment Managers), Lombard Odier offers its clients risk-based asset allocation, themed equity investments, convertible bonds, and absolute return strategies.
Lombard Odier also provides clients of banking and technology services with access to its IT and operational infrastructure, as well as global custody and reporting services.