Rothschild name shines and we feel proud in our association with them

Rothschild deserves accolades for its even stronger performance despite the ongoing financial crisis. Their due diligence, caring for their client's money, winning the best Private bank in 2008 award for 5 different categories in Luxembourg (consistently over the last several years) says it all. Kudos to my colleagues at Rothschild!

Now, Bloomberg delivers an article contrasting the remarkable differences between Madoff and the best in class Rothschild Private Bank and unmasks how Rothschild manage money for their clients. Rothschilds have not disappointed their clients and have followed the age old practices of being a conservative and staid private banker.

It is a privilege that my bank, Axis Bank from India, has a strong partnership with the same private banking group (Banque Privee Edmond de Rothschild Group) and it makes me feel proud to be associated with them so closely. Wishing them many more glorious awards and articles in the future and lucky for us being a partner with such an esteemed organisation!

Some excerpts:

“Madoff has become a filter for everyone’s perception of whether banks were doing their job,” said Leslie Gaines-Ross, chief reputation strategist at the Weber Shandwick consulting firm in New York and author of “Corporate Reputation: 12 Steps to Safeguarding and Recovering Reputation,” (John Wiley & Sons Inc., 2008). “Rothschild is one of the few that is still admired and holds true to its reputation.”

"Baron Benjamin, head of the Geneva arm of the Rothschild family that financed the Suez Canal and Wellington’s victory at Waterloo, is betting that heritage will help his firm grow. Rothschild had no investments with Madoff."

"Rothschild and Madoff are “poles apart,” said Cedric Tille, a professor at the Graduate Institute in Geneva and a former economist for the Federal Reserve Bank of New York. “Many private banks in Geneva have enough tradition to sell themselves as cool heads who don’t fall for the latest fad.”

"'Look for Safety’

Banque Privee Edmond de Rothschild Group received 1.7 billion francs of new assets in the first quarter. Pictet & Cie. and Mirabaud & Cie., two Geneva-based banks that trace their roots back to the 19th century, also attracted clients after avoiding Madoff, who’s in a Manhattan jail awaiting sentencing on charges that carry a maximum prison term of 150 years."

"Rothschild depends on its record of preserving customers’ savings to set itself apart, said Werner Rutsch, co-author of “Swiss Banking -- Where Next?” (Neue Zuercher Zeitung, 2008). "

"Madoff reported annual returns of 8.5 percent to 11.7 percent during the past five years, according to Notz Stucki. Rothschild’s $746 million Prifund Alpha Uncorrelated dollar fund rose at an annual rate of 5.9 percent in the same period. Funds that invest in other firms’ hedge funds gained 3.47 percent, data compiled by Chicago-based Hedge Fund Research Inc. show. "

"While Rothschild snubbed Madoff, he has mirrored his forebears with investments in Bordeaux vineyards, Brie de Meaux cheese and a slice of the French Alpine resort of Megeve. The promotion of what the bank calls its “art de vivre” reinforces the values and family history that are part of Rothschild’s marketing strategy, Cocca said."

"Rothschild produces wine at four properties in France’s Medoc region, close to the Lafite and Mouton Bordeaux vineyards owned by the French branch of the family, and in partnership with South Africa’s Rupert family on a Huguenot farm 50 miles from Cape Town."

Bloomberg:
Rothschild Difference With Madoff Becomes Geneva’s Obsession
Last Updated: May 7, 2009 18:01 EDT
By Warren Giles in Geneva