Posted inSoutheast Asia

LO targets Philippines with UnionBank fund plans

Lombard Odier and the Philippines’ UnionBank have co-developed two onshore funds for private banking clients in the Philippines.

With the two funds, UnionBank’s private banking clients will be able to invest globally through onshore products, Vincent Magnenat, head of private banking for Asia at Lombard Odier, said in a joint statement. 

Both firms are offering the UnionBank Capital Accumulation Global Fund and a “less aggressive fund”, the statement said, without naming the second fund.

“The name of the second fund is still being finalised ahead of the launch of both funds in a few weeks,” Lombard Odier’s Magnenat told FSA in an e-mail reply.

He declined to comment about the funds’ structure, particularly if they will be taking the master feeder route and how the funds will be co-managed by both firms. Their asset breakdowns are not yet available as they are not yet launched, he added.

The partnership of both firms started in August last year, as reported. At the time, the two firms said they were planning to launch 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.

Currently, UnionBank offers 13 unit investment trust funds (UITFs) to its clients, according to information on the bank’s website. Two of those UITFs are targeted to HNWIs, both of which are fixed income products that invest locally.

Both UITFs manage a combined AUM of around Ps1.14bn ($22.67m), according to their fund factsheets. The minimum investment for both funds is Ps10m.

In the Philippines, UITFs and mutual funds are both collective investment schemes but are called differently depending on the entity managing the product.

UITFs are managed by the trust department or entity of a bank, which are regulated by the country’s central bank, the Bangko Sentral ng Pilipinas. Mutual funds, which are managed by investment companies, are regulated by the Securities and Exchange Commission.

Besides co-managing the fund, Lombard Odier will also share its experience with UnionBank for its HNW and UNHW clients to provide guidance on family service needs, including governance and succession planning, according to the statement.

“The partnership will help us to enhance not only the product and service range available to our clients but our overall engagement with them as well,” Eugene Acevedo, senior executive vice president at UnionBank, said in the statement.

The population of the Philippines’ wealthy is expected to rise. According to Knight Frank’s 2017 wealth report, it is estimated that the number of UHNWIs, or those with wealth of more than $30m, will grow by 40% in ten years to around nearly 600 individuals.

 Philippines’ wealthy population





Millionaires ($1m+)




Multi-millionaires ($10m+)




UNHWIs ($30m+)




Centa-millionaires ($100m+)




Billionaires ($1bn+)








Source: Knight Frank

Besides Lombard Odier’s partnership in the Philippines, it also has a partnership with Kasikornbank in Thailand, as well as alliances in Japan, Australia and South Korea, according to the statement.

Part of the Mark Allen Group.