Banca del Gottardo is opening a Spanish office and going after the local high net worth market. The Lugano-based bank is opening a financia...

Banca del Gottardo is opening a Spanish office and going after the local high net worth market. The Lugano-based bank is opening a financial advisory and asset management business in Madrid, which will initially employ 12 people. "We have set up an advisory and asset management company for individuals (Gottardo Patrimonios, Agencia de Valores) and also a specialist asset management unit (Gottardo Gestión, S.G.I.I.C). Both are designed to provide products and services to the Spanish onshore private banking market," Franco Rogantini, a spokesman for Banca del Gottardo, told WealthBriefing. The specialist asset management business is authorised to manage investment funds and taylor-made SICAVs addressed to local high net worth individuals. Luis Sánchez de Lamadrid, a former UBS senior manager in Madrid, will head the new business. All the other 11 hires were local. The bank would not disclose what its targets were for gathering assets, but is confident these will be met within the next year. Gottardo believes it has a specialist affinity with banking businesses in southern Europe and the current move into Spain is part of its strategy to develop onshore businesses in the major southern European economies such as France and Italy. Last year Gottardo increased its stake to 100 per cent of French asset manager Oudart Group, which was set up in Paris in 1987 for private clients and currently has assets of around SFr1.7 billion ($1.4 billion) under management. The bank has also opened branches in Rome, Turin and Treviso. Spain has one of the fastest growing wealth management sectors in Europe and many wealth managers have opened offices in the country during the last few years. JP Morgan Private Bank, Citigroup Private Bank and Barclays Private Clients along with nearly all of the local banks have upped their private banking facilities in Spain. Gottardo sees the future of its earnings coming increasingly from onshore private banking. "We truly believe in onshore strategies," said Mr Rogantini. The bank is under some pressure to improve its performance. Gottardo, which is owned by Swiss Life Holdings, saw net profits fall by 17 per cent to SFr71 million in 2004, which the bank blamed on a large increase in its tax burden. Assets under management rose 7 per cent to SFr41.1 billion.