LGT offers sustainable Swiss-style banking to wealthy Thais

LGT Chairman Prince Max von und zu Liechtenstein told a media briefing on Thursday that sustainable investment is becoming a global trend as the need to address climate change becomes more urgent.

When asked who his clients were, the chairman said LGT’s policy was to keep its clients secret. LGT is based in Liechtenstein, bordering Switzerland. It uses the Swiss currency and the Swiss National Bank is its central bank.

To encourage wealthy Thai investors to feel comfortable with the trend of sustainable investment, the prince said his banking and asset management company adheres to the sustainable investment model with its "impact investing mindset".

Impact investing targets companies that focus on generating attractive returns with their products and services while at the same time making a positive difference in people’s lives and the environment, he said.

He gave two examples. A health company offering an innovative product that not only generates returns but also has a positive impact on people's health and a food manufacturer offering a tasty product that is also healthy and environmentally friendly.

LGT Private Banking's sister companies, Lightrock and LGT Capital Partners, are pioneers in impact investing, the prince said. Since 2009 and 2010, respectively, they have been investing in sustainable and rapidly growing businesses that make a real contribution to systemic change, he said.

"At LGT, sustainable investing means putting your assets to work for you while also benefiting others,” he said before listing its three services: 

a) sustainable portfolio management, which considers significant sustainability aspects when making investment decisions for clients,
b) sustainable investment advisory for clients who prefer to make their own investment decisions, and
c) long-term investment solutions via investment funds such as LGT Funds, exchange traded funds (ETFs), and third-party providers.

He said that LGT sustainable investment includes mitigating environment, social and governance (ESG) risk by avoiding contentious industries. To assist its clients, it uses its “LGT Sustainability Rating” for equities, bonds, funds, and ETFs.

"We all share responsibility for the environment and society. LGT, therefore, set itself ambitious goals at an early stage to help preserve the environment, society and the economy for future generations," the prince said.

At the same time, LGT's investment strategy is based on long-term returns and may not be suitable for investors looking for quick profits.

The LGT sustainable theme emerged as the Thai government encouraged and supported the private sector to operate under ESG and BCG (bio-circular-green) models.

The LGT chairman said he strongly believed growth in Asia has great potential.

The economies of the United States and Europe will be slowed by persistently high inflation, which will force central banks to maintain high interest rates, he said. Asia, on the other hand, will gradually recover from the pandemic thanks to factors such as strong domestic consumption, digital technology development, middle-income growth, and economic reopening.

"The year 2023 will be a good start for Asia. Based on the region's growth rate, I believe Asia's economic size will surpass Europe within a few years," he said.

LGT is wholly owned by the Princely House of Liechtenstein. The bank provides services for high-net-worth clients and families. LGT Private Banking distinguishes itself by providing the exclusive opportunity to invest the way the Princely House of Liechtenstein does. This includes a broad range of investment opportunities in alternative asset classes that are frequently unavailable to general private investors, the prince said.

Currently, Asia tops its priority list as it seeks to better understand the distinctive characteristics of each country in the region in order to provide the right financial services and products, he added.

As of the end of 2021 LGT’s assets under management totalled 285.802 billion Swiss francs and group profit totalled 353 million Swiss francs in 2021.