LGT Group’s assets under management have increased dramatically since you started in 2006. Where is the money coming from, and what kind of money is coming in?
Geographically, we have gotten Asia right. There are many of our competitors in Europe that have been much larger than us, but they haven’t tried Asia, or they haven’t really gotten Asia right. We have gotten the asset classes right, too. We were early to recognise the attractiveness of the private markets-private equity and private debt, where returns have been better than in public markets. Clients on the private banking side, but also on the institutional asset management side, don’t like too many changes in strategy, in relationship management, and in coverage. They want to tell their story on the private client side, that is typically an intimate story that you don’t want to share all the time with too many people, too many times.
Could you share LGT’s India expansion plans?
We think long and hard before we enter a market and, once we enter, we do so with a long-term perspective. Ideally, we want to become profitable as we enter a new market. Once we achieve profitability, it is critical that we keep it in a good range. Clearly, with India, we’re not worried that it cannot become a very meaningful part of our business.
What is the biggest challenge that you face in India that you don’t face in any other market?
I think the regulatory complexity of India continues to be higher than in other markets and is still a hurdle for investors. I am not the biggest expert on it, and I think it is improving. We are taking advantage of the improvements that are taking place, but it remains a more complicated and difficult regulatory and tax regime.
In terms of deploying capital, how attractive are different parts of the world, and especially India?
If I look at different economic blocs and jurisdictions, there are risks and challenges everywhere. It is very hard to predict how the US will look in 10 years, how China and Europe will look in 20 years. The world has always been unpredictable, but I think it has become more unpredictable. So, there is a clear case for disciplined diversification. 2026 has been a rough year for the AI trade. When you talk to clients, are they still overweight on AI?
The winning way of investing in AI is to identify which areas and companies can benefit from it, make a longer-term bet, and look at valuations.A lot of people have seen this, which leads to excitement, fantasies, and bubbles. Most technological transformations have been associated with significant bubbles that, at some point, burst. So, if valuations are coming down, it is probably healthy. I don’t worry about it too much.
Given geopolitical tensions and the flight to safety, is the surge in demand for gold and silver justified?
I am more of a cash-flow-driven investor. I prefer assets that generate good cash flows and feel safe. That aspect is missing with precious metals, so I have not fully understood the excitement around them. It is a pattern that has existed forever, but it doesn’t have much appeal to me personally.
There is now a narrative that Europe is falling behind. You see Trump saying Europe is in ruins, while someone like Macron in Davos said this case is overstated. As a representative of a storied royal dynasty, how do you look at the continent?
I think there is some truth to that. I think Europe’s strong recovery after the Second World War led to a little bit of laziness that we need to get rid of. The ambition level in Europe needs to come back in a stronger way. I think it is still there with some companies in some areas, but overall, I do think Europe needs to step up its game a little bit.
The world is breaking into different blocks of capital. Does this make your business more difficult in terms of deploying capital globally?
Ironically, it has helped us in the short term. In the past, some US companies were very strong competitors globally. The US and many US companies have lost sympathy over the last 12 months, given recent changes. That has helped us, because people make decisions in an emotional way and sympathies matter.We are an organisation from a small country that doesn’t inflict pain on anybody, and that is appreciated. Having said that, I hope the world does not continue in a more conflictive and nationalistic direction.
Private wealth management is a crowded space. Are you trying to tap a particular niche, or are you open for business with everyone?
We want to have good clients who pursue business with a long-term perspective, with good ethics, and who are generally doing well. We must set certain lines and borders when clients are either too marginal or too difficult or fall outside our regulatory and ethical guardrails.
Has the dilution of secrecy laws and increasing geopolitical pressures made things more challenging for you?
These changes around banking secrecy took place more than 10 years ago, and we have done very well over that period. The political and economic stability of Switzerland and Liechtenstein continues to be appreciated, especially as such stability becomes more exceptional.