"Navigate well through these times"

Midway through the 2018 investment year, it is clear that monetary and geopolitical events lead to greater volatility in bonds and equities. How investors behave in this environment and what a global asset manager can offer here, says Edg Aumiller, Country Head Switzerland of Legg Mason

by Markus Baumgartner, b-public AG

Mr. Mistake, Legg Mason one of the largest US fund companies. What makes you different?

Edi Aumiller: Legg Mason is a leading asset manager. We were founded in 1899 at Baltimore headquarters. At the end of March, we managed $ 754 billion in a wide range of investment opportunities. We offer our clients long term and actively managed investment strategies. We combine a group of investment managers established in a multi-store model. It comprises nine subsidiaries specializing in equities, bonds and alternatives as well as liquidity strategies. Our affiliates are industry leaders in their respective fields, pursuing a unique investment approach to identify the best opportunities.

How does the multi-store model work?

Edi Aumiller: Our multi-boutique model brings together nine specialists in their respective asset class fields. In recent years, we have taken over several companies and left them as independent subsidiaries. Thus, the investment expertise remained. Many product strategies have been in existence for many years and are continuing on the global Legg-Mason platform

With this model, we allow private and institutional investors on six continents to benefit from the independence of portfolio managers of our nine specialized subsidiaries. The strength of Legg Mason lies in the global distribution network, which serves as a platform for all stores. Before these fund companies joined our family, they could usually offer their solutions only in the local market and often only through a distribution channel, for example to institutional clients. In addition to the distribution network, we can offer them the entire value chain.

On the one hand, we work closely with the international offices of Legg Mason in Switzerland, but we also have extensive cooperation with our subsidiaries around the world. On the one hand, we propose standard strategies in the form of investment funds. On the other hand, we focus on tailor-made solutions for our more institutional clients. So we can always respond to local needs in each country.

"Each store has its own expertise in its specialized field and makes 100% independent and independent investment decisions."
Edi Aumiller, Legg Mason
19659011] Does this mean that every shop has its own approach to investing?

Edi Aumiller: Exactly. Each store has its own expertise in its specialized field and makes 100% independent and independent investment decisions. For example, Australian Rare Infrastructure in the field of listed infrastructure, Clarion Partners in the US real estate industry or Western Asset in the context of specialized global fixed income house. Each team works independently and on the basis of an independent vision, with its own CIO and its own investment philosophy, in order to provide all clients with effective investment solutions

What are your goals in Switzerland?

Edi Aumiller: Wir sind seit With an office in Geneva in 2011 and since 2015 in Zurich. This year we have expanded our sales team with the involvement of Thomas Eckert of Julius Baer. He supports our six-person sales team in Zurich as Business Development Manager. In the newly created position, Thomas Eckert will further develop business relationships with banks, insurance companies and family offices. Long-term development work has paid off. The industry now knows us and we have close business relationships between all channels, whether it's pension funds, banks, family offices, investment managers, etc. 39, independent assets or insurance companies. In Switzerland, there is a great love of the house in plants. We would like to soften these areas with our global expertise and cover all classes of assets. We can offer individual, liquid and less liquid solutions on all channels.

"We want to be able to provide modern infrastructure and modern services that simplify the daily activities of our customers and add value to their content.

The Swiss fund industry is considered very stable and growing continuously. What's going on beneath the surface?

Edi Aumiller: The financial industry is also constantly changing. Cooperation between pure asset managers and banks continues to evolve, especially at this time due to regulatory changes. We want to be able to provide modern infrastructure and first-class service solutions that simplify our customers' daily activities and add value to their content. For example, we are actively discussing closer cooperation with customers who, for example, have direct access to know-how in the form of video, content and expertise via a new application.

They studied how Swiss banking customers deal with new financial technologies, The result?

Edi Aumiller: Behavioral models do not just change overnight, and asset management is a very personal affair where trust is a must. The use of robo-counselors is currently still considered by many to be critical. According to our latest global investment survey, Legg Mason, 72% of Swiss private investors surveyed believe that personal contact with customers is important and can not be replaced by technology. The vast majority find online tools or applications interesting and enjoyable as this increases efficiency. But she still wants to hear the opinion of an expert. This attitude can be found in all age groups. For example, about two-thirds of Generation Y, the 18-35 age group

Stock markets have long been dominated by ultra-soft central bank monetary policy. This period is slowly coming to an end. How do you evaluate the development of your products?

Edi Aumiller: This year, some monetary and geopolitical events have led to greater volatility in bonds and stock markets. In this context, many investors are rather wait-and-see because they have other risks, such as the United States. trade wars, the uncertainty of US interest rates and inflation expectations, global growth and conflicts in the Middle East. This creates uncertainty and calls for a wait-and-see attitude

. For this reason, on the bond side, for example, global bond portfolios with a flexible approach are in demand. These offers have had their problems in the short term. But we are confident that our experts are navigating these strategies well during this period. In addition, alternative investments are becoming more and more the object. Private debt, co-investment strategies or certain types of hedge fund styles are increasingly in demand. In addition, emerging economies are analyzed more selectively because their developments are not homogenous.

If you look at capital flows, what trend do you see?

Edi Aumiller: I see a big trend in the wholesale sector in thematic investment. These are topics of interest to investors and bear witness to them daily. Think about cancer research, robotics or sustainability. As we age, we need better, service-oriented life opportunities and read daily progress in the technology sector and how they can change our daily lives.

Personal Information
Edi Aumiller is Sales Director of Legg Mason since 2014 active Switzerland. He is a member of the Swiss Financial Analyst Association (SFAA), holds a degree in Banking and Finance, Financial Analyst and Certified Asset Manager in Switzerland, Certified Financial and Investment Expert in Switzerland, as well as Certified International Wealth Manager (CIWM) and Certified International Investment Analyst (CIIA).

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