Building the future at Catella
Mikael Pauli, head of Wealth Management at Catella, has outlined expected developments in this relatively new part of the Swedish financial group.
Catella, the Nasdaq OMX First North listed Swedish financial group, breaks its operations down into two main constituent parts: corporate finance and asset management.
The wealth management (Förmögenhetsförvaltning) business sits within asset management, along with fund management and credit cards and acquiring.
Wealth management operations were brought forward during early 2011 through the acquisition of EKF Enskild Kapitalförvaltning. As one of the larger independent asset managers in Sweden at the time it had some SEK4bn (€475m) under management.
The development of this part of the group’s business is also linked to the integration of Luxembourg based Banque Invik into Catella Bank, announced in June 2012, as the asset management operations were being organised within the Bank. The integration of Luxembourg and Swedish businesses means wealth management will have some SEK9bn (€1.1bn) under management, according to data published by the group.
Pauli (pictured) tends to refer to the wealth management operations as more like “private banking” in its approach, given that its target is companies and individuals served through a particular platform. And that is also how it wants to position itself in contrast to services available to these customer segments from the universal banks operating in the Nordic region and elsewhere.
It also reflects Pauli’s own background. Previously, he headed up Swedish firm Carnegie’s private banking business. Pauli says that key areas of the emerging business at Catella include asset management and financial planning as part of its focus on developing a traditional private banking type business. The company has been building a platform to support this aim, which he described as ready to go live from March 2013.
The asset management services are an important part of the offering, Pauli says. Catella will be offering services on both a discretionary and consulting/advisory basis, targeting wealthy individuals, and tier two and three institutions, such as smaller insurance companies.
The platform that has been developed to support the wealth management (private banking) business is based on a fully open architecture, Pauli stresses, with a focus on active funds.
A number of model portfolios are offered to clients, focused on global, emerging market and Nordic equity assets. In fixed income, the focus is Swedish long-term and short-term rates, Nordic and corporate bonds, including high yield. Two hedge funds and a commodities portfolio blending active and index funds are also offered.