At the beginning of last year WealthBriefing published an analysis of some of wealth management’s leading lights. We covered the bosses at t...

At the beginning of last year WealthBriefing published an analysis of some of wealth management’s leading lights. We covered the bosses at the heavyweight Swiss banks - Marcel Rohner, chief executive of UBS and chairman/chief executive of global wealth management, Hans de Gier, chief executive of Julius Baer and Rolf Aeberli the newly appointed head of Banca del Gottardo. We mentioned Thomas Kalaris, chief executive of Barclays Wealth, Robert Taylor, chief executive of Kleinwort Benson Private Bank, James Gorman, president and chief operating officer of the individual investor group at Morgan Stanley and Peter Scaturro, chief executive of US Trust. So what did 2006 bring for the members of our list, and who should be picked out for a special mention in the year ahead? Marcel Rohner still occupies the number two role at UBS and continues to oversee the bank’s wealth management business – still the largest in the world. But this year has not been plain sailing for Mr Rohner and his crew at UBS Wealth Management. The bank’s annual results were unsatisfactory and during the year it suffered the indignity of loosing up to 100 relationship managers in London to the newly formed Cheviot Capital. Last year we speculated that Mr Rohner might have peaked too early at UBS to take over as chief executive from the still relatively youthful Peter Wuffli. “Could he one day be looking to realise his obvious chief executive qualities elsewhere?” we asked. This hasn’t happened yet but it would take a mighty big offer to prise Mr Rohner away from UBS. Some commentators expect faces at UBS to continually change in 2007. “The bank that powered ahead with its European initiatives in 2001 is now fighting a tough battle to retain the staff it hired as competitors have caught up with products and outstripped it in terms of remuneration,” says head hunter Tim Gibson. This year analysts picked out UBS’ Michael Weisberg and Gery Bruederlin for a special mention. “Mr Weisberg's star continues to ascend the dizzy heights of UBS. Now in global charge of the products business he will undoubtedly continue to innovate and lead what is, undoubtedly, the foremost team in global private banking,” said head hunter Dudley Edmunds. Mr Bruederlin returns to the private bank next year as global head of HR. He’s known as a big picture thinker who invariably knows more about what is happening in global wealth management than many very senior front line private bankers. Under Mr Bruederlin, UBS has a good chance of hiring the best people in 2007. And in the UK, let’s not forget that Matthew Brumsen has taken over as head of UBS Wealth Management UK, Northern and Eastern Europe, replacing Jeremy Palmer. He’s sure to try to raise his profile and make his mark this year. Probably not UBS management’s most popular person at the moment, but Michael Kerr-Dineen’s progress during 2007 will be fascinating to watch. When we spoke to the boss of UK’s Cheviot Capital recently, he said he was talking to at least nine teams of UK-based investment managers. We would be surprised if he did not bag at least some of these soon for his highly entrepreneurial and highly rewarded set-up. At Credit Suisse the race to succeed chief executive Oswald Grübel is hotting up after the head of Winterthur, Leonhard Fischer, has been persuaded to stay at the Swiss bank rather than follow the insurance unit to its new home at Axa. Mr Fischer is widely credited by analysts for bringing Winterthur back to profitability in recent years, will become its new head of operations for Credit Suisse in Europe, the Middle East and Africa, effective from 1 March 2007. Mr Fischer will report to Mr Grübel and will have broad responsibility across Credit Suisse's three main business lines, investment banking, private banking and asset management. An investment banker best known as the former head of Dresdner Kleinwort Wasserstein, which he left in 2002 after the bank was taken over by Allianz, Mr Fischer is now seen as a strong candidate to succeed Mr Grübel. Another former investment banker, Thomas Kalaris was chief executive of Barclays Wealth Management at the beginning of the year and is now at the helm of the newly branded Barclays Wealth. Last year we said that Mr Kalaris’ appointment showed that Barclays was at last getting serious about developing their considerable franchise in wealth management. Events during the year certainly proved this to be the case. Mr Kalaris is known to be a very determined man who is pushing through a sea-change at Barclays Wealth along with a highly motivated and talented senior management team. He makes no secret of his belief that size matters in wealth management and that he is driven to see his organisation at the top table of global wealth management by singing from the BarCap songbook. There’s no question that he has the budget to achieve his goals. Analysts recommended Mr Kalaris for inclusion in the 2007 list and we believe that any review of the industry would be incomplete without him. But will his investment banking roots hold him back in wealth management? His challenge for the year will be to extend the Barclays brand as far away from its retail roots as possible. Amongst his team Paul Richardson, Ian Ewart and Gary Dugan deserve a mention. Mr Richardson is a recent hire as head of private banking media and entertainment from a senior position at Coutts. He is a lawyer with a background in sports marketing and his brief is to build a global sports team within Barclays. Gary Dugan is the highly respected head of research and investment at Barclays Wealth. Mr Ewart is global head of communications at Barclays Wealth, after stints at HSBC and UBP and has been responsible for the bank’s recent hugely powerful re-branding exercise. This year he’ll be working closely with Mr Kalaris to make sure world’s richest clients are fully aware of the Barclays Wealth proposition. Another marketing expert Zoë Couper left Credit Suisse to found a unique marketing and communications firm, focused exclusively on the high net worth and institutional markets. After only one year, Carte Blanche is expected to expand the team in London and into Germany in 2007. Armed with credibility and connections, this dynamic young entrepreneur will be one to watch. Hans de Gier, the 63-year-old Dutch chief executive of Julius Baer was catapulted up the ranks of Swiss private banking when Julius Baer bought SBC Wealth Management, the holding company for Ehinger & Armand von Ernst, Ferrier Lullin & Cie and Banco di Lugano as well as GAM, from UBS which took a 21.5 per cent stake in Julius Baer. But it is Alex Widmer, chief executive officer, private banking and Thomas Meier, chief executive officer of private banking in Asia who analysts are now pointing to. “Alex Widmer has had the most rounded career at a senior level of anyone in the market. He was frustrated by in-fighting at Credit Suisse and now has been mandated to build an international private bank to be reckoned with,” according to Guy Trezona of New Millennium Group. “He has a detailed understanding of how to create an advisory style private bank and has realised that the private bank should concentrate on Asia and India.” “With organic expansion in mind, he had surrounded himself with talented people from Credit Suisse.” Thomas Meier is ex-Credit Suisse and ex-Deutsche Bank. His brief is to build up the private bank in Asia Pacific and Eastern Europe. He’s a highly regarded and respected Swiss banker with a huge product knowledge and ability to create wealth solutions for clients, say analysts. His target market is the ultra high net worth to which he brings a Swiss style to modern thinking. Another Asian operator, Frenchman Daniel Truchi of SG Private Banking Asia is taking over from the bank's current global head of private banking, Pierre Mathe this year. He too is highly regarded and should continue the success laid down by his predecessor. Last year we speculated that US citizen, Robert Taylor, chief executive of Kleinwort Benson Private Bank would be in the spotlight no matter what the outcome of the changes he makes during the year. Mr Taylor has gained considerable experience in UK private banking having been at Coutts, Merrill Lynch and SG Hambros. He’s recently changed Kleinwort’s management structure, expanded its senior management team and appointing dedicated managing directors for Jersey and Guernsey. He’s also re-directed the bank to be more advice rather than product-driven. Let’s see whether he can make this great brand work for his German bosses at Dresdner and Allianz. Australian James Gorman, president and chief operating officer of the individual investor group at Morgan Stanley has restructured the management team in the US and has begun the process of targeting wealthier clients around the world and increasing margins as a result. In the UK too Morgan Stanley has made it absolutely clear that its focus is exclusively on the ultra high net worth market, both with its sale of Quilter in the UK to Citigroup, and with statements surrounding the sale. Peter Scaturro, who became chief executive officer of US Trust in May 2005, after resigning from the post of head of Citigroup Private Bank is now to head up the private banking business at Bank of America and report to Brian Moynihan, head of the wealth and investment management unit. Bank of America is to buy US Trust, the private-banking unit of Charles Schwab, for $3.3 billion in cash, so as to be in a better position to compete for high net worth clients. For Charles Schwab, the sale marks the end of a strategy to cater to the high net worth market. For Mr Scaturro Bank of America’s purchase of US Trust gives him the opportunity to work in a larger organisation again, with an obvious career path to the top. Chris Meares, the new chief executive officer of HSBC Wealth Management has this year taken over a strong business, although he must deal with some problems. Commentators point to some dead wood in the bank, and say that the investment people do not rest well with the more traditional bankers within the private bank. Reports of unrest and argument are circulating and HSBC is thought to be still fairly parsimonious on compensation issues according to people familiar with the matter. Senior figures at EFG were mentioned by several analysts. Jean Pierre Cuoni, chairman of EFG Suisse was singled out as a hugely dynamic and inspirational leader who continues to press hard for expansion and diversification. “He has proved to be one of the most innovative leaders in private banking over the last few years and has clearly not run out of steam yet,” said one commentator. EFG chief financial officer, Rudy van den Steen was picked out by Ray Soudah who said: “Superior financial results with strength in balance sheet and capital can be especially expected from EFG Private Banking in 2007 as the financial prudence with which numerous acquisitions were carried out reflect themselves in an accumulative way; this stunning expectation can be attributed to the financial acumen of EFG’s strong CFO Rudy van den Steen, part of EFG’s unique entrepreneurial team.” Mr Soudah also picked out Joe Straehli, Bank Sarasin’s new chief executive officer and Guy De Picciotto, chief executive officer of Switzerland’s Union Bancaire Privee. “During 2007 Bank Sarasin is likely to be re-energised into a repositioned and successful medium-sized international private banking operation with modernised structures and services, recovering rapidly from an institution previously and perpetually the subject of speculation and uncertainty; most of this will be due to the direct actions of the new chief executive, Joe Straehli and his team,” he said. “Alternative investment products including hedge funds coupled with traditional relationship management services will propel independent UBP further as it demonstrates its successful obsession with adherence to its core private banking and focussed strategy; this simplicity and clarity of vision being lead by UBP’s chief executive Guy de Picciotto,” said Mr Soudah. Elsewhere in Switzerland, WealthBriefing editorial board member Charles de Boissezon chief executive of Banque Piguet was mentioned as someone to watch for the next few years. Banque Piguet have already opened for business in Dubai and Hong Kong and are rumoured to be opening in mainland China next year. Mr de Boissezon is known as a charismatic leader and as a big picture thinker. He will undoubtedly continue to take his bank much further than it would have otherwise got, said one analyst. Another editorial board member, Lord North Street’s William Drake was included towards the top in a recently-published wealth management power index. His growing list of ultra high net worth families is testimony to the success of the investment approach this London-based multi-family office employs. But there’s increasing competition in this space though, with Marcus Gregson’s arrival at Sandaire and from new boys on the block, Daniel Pinto’s Stanhope Capital. According to some analysts, the faces to watch in 2007 will be those driving the continued change and harnessing the power gained from closer synergies between investment and private banking. Eva Castillo, newly promoted head of EMEA at Merrill Lynch Global Private Client and Alex Classen at Morgan Stanley Private Wealth Management are thought to be amongst the pace setters in this space, armed with the time and resources to change their businesses for the better. Ms Castillo brings an investment banking perspective, along with immense charm and determination to her newly expanded remit. And, according to Mr Gibson, those wrestling with more classic private banking business that lack total freedom of operation, perhaps a foreign owner or retail parent, may struggle to make the changes necessary to gain serious momentum. Marianne Hay at Citigroup and Sarah Deaves at Coutts, whilst both enjoying general market related improvement in numbers, may labour with the burden of wider group priorities and retail politics. This makes change and synergies difficult to establish with the corresponding quest for talent elusive. Ms Hay will have a new business, Quilter, to deal with in 2007. And even though she’s familiar with the broker, commentators will be very impressed if Citigroup can make more of a success of it than did Morgan Stanley. We also may expect renewed vigour in 2007 in the UK market from Rothschild under ex-Barclays investment supremo Noland Carter and from Ansbacher under chief executive Hugh Titcomb. Martin Andrew, the Close Brothers head of private clients was mentioned by analysts. This ex-Merrill executive will have to draw on the depth of his early career consulting experience to bring together the numerous, although independently successful Close private client businesses into one this year. Extremely well-respected, this Mr Andrew may become one of the industry’s stars of the future. And more lower profile players may come alive during the year. “On the global stage the banks that are not in the headlines everyday but in the middle of the pack are likely to make a strong push in 2007 with interesting plays in terms of acquisitions, market land grabs and new product solutions that focus on both the asset and liability solutions side of the story and broader wealth structuring,” said Sebastian Dovey, managing partner of Scorpio Partnership. “Among these banks I would single out Pictet & Cie in Switzerland, Societe Generale both in France and in Asia, Northern Trust and BoNY-Mellon in the US. While there may be specific individuals guiding these firms that will get notoriety because of their leadership role, the interesting feature is that these firms are very solid at the core and have processes that both work and adjust well to management change.” But it may be present crop of individual leaders who will make the quantum leap in wealth management. According to Mr Dovey, “while there is a general desire to pick out individuals and throw the spotlight on them, at this stage the industry is still searching for a cadre of true business leaders that will truly take the concept of global private banking firmly into the marketplace.” He said: “At this stage, most of the strategies deployed by the market still seem to focus on ‘beating the guy next in line’ with very few actually thinking about winning the race outright. The real challenge is for someone to totally shift the mindset of the market. Perhaps it will happen in 2007? I hope so and believe it can be happen. It is all a question of making some brave decisions and executing on a vision.”