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WealthBriefing: Executive Moves in July

Contributing Editor, 1 August 2005

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WealthBriefing covers all the major people moves in the global wealth management sector and also in this section is a round up of the major ...

WealthBriefing covers all the major people moves in the global wealth management sector and also in this section is a round up of the major trends in hiring within the sector. There has been much movement in UK private client stockbroking as the sector continues to come under consolidation pressures. During July this has been played out most dramatically in Scotland, which has seen the closure of Aitken Campbell, the Glasgow-based private client stockbroker, the announcement of a new start-up by London stockbroker Smith & Williamson in the same city, and further departures from Gerrard’s private client business apparently to S&W’s new venture. Less dramatic has moves in wealth management in London and Switzerland, but these may be harbingers to things to come. Richard Madeley, after a long absence from the cut-and-thrust of mainstream wealth management, has been hired by JP Morgan Private Bank to help get things rolling for them in the UK. And UBS’s strategic and managerial changes at the end June could foretell other changes in the future. India is where the real action has been in the wealth management arena during the month of July. Local banks are tying up with international wealth managers to announce new non-resident Indian initiatives and onshore wealth management strategies at a lightening pace. And this is fueling a huge growth in jobs — albeit centred mostly on India’s financial capital, Mumbai. Executive Moves Europe JP Morgan Private Bank has hired Richard Madeley, the former head of UK private banking of UBS and managing director of Deutsche Bank’s private banking business in London. Mr Madeley joins from Ryes Capital, a specialist hedge fund risk management group he helped to set up after leaving Deutsche Bank. JP Morgan has also hired Matthew Haimes, who joins from Deutsche Bank, where he was head of business development in the private wealth management group of Deutsche Bank in New York. In his new role, Mr Madeley will focus on extending JP Morgan’s coverage of the UK domestic private client market. Mr Haimes will also work with the existing team, specifically focusing on expanding the bank’s relationships with hedge fund and private equity principals. Both will report to Olivier de Givenchy, head of the UK private banking business of JP Morgan. VP Bank (Luxembourg) has appointed Pol Kenens, currently head of the private bank in the country, to its management board. Mr Kenens will take up his position at the beginning of next year after Hans Gerner steps down from the board of the Luxembourg business of the Liechtenstein-based bank. VP Bank said it would create a new management board structure in Luxembourg, which would constitute three members with the post of chairman going to one of the existing members, Yves de Vos. The bank said it was looking to recruit a third member. Barclays Global Investors, the fund management business of Barclays, has hired Claire Locher, a senior fund manger from Pictet, to head its new Swiss operations. BGI said it has set up Barclays Global Investors (Suisse) and opened an office in Geneva. Although BGI will be mostly targeting institutional clients in Switzerland, a considerable amount of private client money has entered BGI funds in recent years as tracker-like funds become increasingly attractive to both institutional and private clients. Barclays Private Clients has seen the departure of two senior managers. Eric Lorentz, head of the bank’s Middle East desk has left. Philip Carey, who was a director at Barclays private bank in London, has also left to join HSBC in Geneva as a senior private banker. Christian Siva-Jothy, the former global head of foreign exchange and proprietary trading at Goldman Sachs, has joined Fulcrum Asset Management, a wealth management and hedge fund business set up by the former chief economist of the American bank, Gavyn Davies. Mr Siva-Jothy, who left Goldman’s at the end of last year, will run Fulcrum’s hedge fund business, which started trading in May as Semper Macro and opened to third-party investors in June. Fulcrum’s wealth management operations is run by Andrew Stevens, also formerly with Goldman Sachs. Two European equity fund managers — Zafar Ahmadullah and Adriaan de Mol van Otterloo — at London-based Schroder Investment Management - are leaving to set up separate fund management boutiques. The new firms are expected to be hedge fund-type fund management businesses targeting both high net worth and institutional money, according to sources close to the two individuals. No other details of the new initiatives have so far been disclosed. Their positions at Schroders will be replaced by Leon Howard-Spink and Gary Clarke, fund managers at Gartmore Investment Management. Kleinwort Benson Private Bank has hired Martin Heale, a senior private banker at Barclays Private Bank in London. Mr Heale worked with Jeremy Knowland, the former head of discretionary investments at Barclays Private Bank, before Mr Knowland left to join Citigroup Private Bank early last month. Brewin Dolphin Securities, the UK’s largest independent stockbroker with a big private client business, has appointed James Brooks as group head of product provider relations. Mr Brooks joins from Gerrard, where he managed a team overseeing the administration and risk management of all self-invested pension products and offshore bonds. He will report to Sandy Bryson, head of financial services. In this new role, Mr Brooks will be responsible for building strategic partnerships with senior personnel of major product providers to develop an integrated business with Brewin's investment managers. In addition he will build bespoke products, administration procedures and processes between BDS and the major product providers to improve efficiency and manage risk. Separately, Brewin has promoted Matthew Wells and Steve Scott to the positions of assistant director at its office in Leeds. Quinlan Private, the Irish investment group which has been aggressively buying up property assets on both sides of the Irish Sea, has appointed Olan Cremin , head of private banking at Irish Intercontinental Bank, as its chief executive officer. The banker has been hired to “drive the growth and further direction of the business in line with ambitious expansion plans”. Mr Cremin will report to the group’s founder Derek Quinlan, and his fellow partners Tom Dowd and Peter Donnelly. It is the second time in two years that IIB has lost a head of private banking. Mr Cremin’s predecessor, Vincent Dodd, left the bank in 2003. BNP Paribas has appointed Steve Percival as a global relationship manager covering UK financial intermediaries for its securities services arm. Mr Percival, formerly with HSBC Securities Services, will focus on BNP Paribas's mid-tier client relations in the UK. He will be based in London and will report to Jason Nabi, head of business development for UK financial intermediaries. Smith & Williamson, a private client and institutional stockbroker, said it plans to open an office in Glasgow and is apparently in the process of hiring a number of former employees of Gerrard Investment Management. The firm plans to hire around 30 staff within the next year and might acquire other operations to grow its business. The firm has confirmed it has had talks with a number of the six staff to have left Gerrard since May. The six departures were Graeme Brock, a Glasgow office director and the most recent departure, Stephen Quaile, a former head of the Scottish operation, and directors Colin Lawson, Rowan Braithwaite, Tom Mitchell and Douglas Scott, who all left in May. They are all currently on six-months gardening leave. Gerrard has recently issued a memo to its staff in Glasgow from Mark Kibblewhite, the new regional head, appealing for them to back his vision for the company, or “I don’t want you here.” Peter Sartogo has become managing partner of Global Wealth Management, a Geneva-based multi-family office. He joins from Deutsche Bank where he was a managing director in equity derivatives sales in London. Mr Sartogo will be responsible for the London office, which will be set up next year, and will be the second managing partner alongside Sigieri Diaz Pallavicini, who founded GWM five years ago. Further London hires are expected to be announced shortly. The Pallavicini family, together with partners, hold a 51 per cent stake in GWM, while Italy's Banca Finnat has a 49 per cent stake. The London office will add to those already in New York, Geneva, Luxembourg, Milan and Rome. HSBC Private Bank has appointed Philip Dench as regional head of compliance for UK and Channel Islands. Mr Dench joins from Credit Suisse Private Banking, where he was director of legal and compliance. He will report to Mike Bulloch, head of international and group private banking compliance, and Chris Meares, chief executive of HSBC Private Bank in the UK, Channel Islands and Luxembourg. Mr Dench's previous experience also includes compliance management at Schroder & Co, JP Morgan (Suisse) and the Securities and Futures Authority. Schroders Private Bank has appointed Paul Nesbitt as a director; he joins from Dryden Wealth Management, which has recently been taken over by Fortis, the Belgian-Dutch financial firm. At Dryden, Mr Nesbitt worked as the wealth manager’s chief technical analyst. Russell Investment Group has appointed Michael Hunt as director of operations for Europe, Middle East and Africa, based in London. Mr Hunt joins from Deutsche Asset Management, where he held a variety of roles including joint head of London operations and head of client services. The hire is part of Russell’s strategy to increase its multi-manager business in Europe, the Middle East and Africa. Charles Stanley, one of the UK’s largest independent stockbrokers, is opening a private client office in Birmingham and has hired six individuals from rival private client stockbroker, Gerrard. The new team — which included the initial arrival of David Inions and Marcia McKenzie — will handle private client portfolios on a discretionary and advisory basis and will also undertake execution-only business on behalf of clients. In addition to Mr Inions and Ms McKenzie, who have already joined, the new team will comprise Paul Smith, who is joining on 30 August, and Martin Tatlow, Simon Sharp and Lawrence Fagg who are all joining on 28 November. On joining, Mr Fagg will take on the responsibilities of Birmingham branch manager. London-based Veritas Asset Management, the boutique founded by former Newton Fund Managers executives Stewart Newton and Charles Richardson, has appointed John Campbell to head its sales and marketing drive to both private clients and institutions. Mr Campbell joins from Threadneedle where he was director of investment sales. He has 19 years' experience in the City. Dawnay Day Qantum, the specialist London-based investment manager, has appointed Bill Kolubayev as director of investments. He will be responsible for developing and managing a range of quantitative funds, using derivatives and quantitative techniques for portfolio construction and risk management. DDQ said in a statement that it plans to launch the first of these quantitative funds in the autumn and they will be under a UCITS III umbrella. Dr Kolubayev has over 18 years of experience in the derivatives market. Since 1987, he has held a succession of senior positions both as an analyst and as a proprietary trader with Barclays Capital, Credit Suisse First Boston, Merrill Lynch and Morgan Stanley. He holds a doctorate in chemical physics from New York University. Deutsche Bank has appointed Stephan Kunze as global head of retail structured products within its asset management firm, DWS. Mr Kunze joins from ABN Amro, where most recently he was head of private investor products and previously head of the bank’s European private client group in equity derivatives. Mr Kunze is expected to work with Deutsche’s wealth management clients as well as its retail client base. Deutsche Bank has also appointed Karl Strobl and Henrik Takkenberg from ABN Amro. Both will become deputy co-heads of retail structured products, reporting to Mr Kunze. At ABN Amro, Mr Strobl was most recently global head of retail products trading and equity exotic products trading. Mr Takkenberg was previously European head of private investor products at ABN Amro. All three will join Deutsche at the beginning of October. Mr Kunze will be based in Frankfurt, while Mr Strobl and Mr Takkenberg will be based in London. RAB Capital, the London-based listed hedge fund firm, has appointed Rod Barker to its board in a business development position. Mr Barker joins from CSFB where he was head of prime brokerage. His position at CSFB will be replaced by Dave Clarkson, previously co-head of prime services trading. Mr Barker’s move follows the departure of Manny Roman, head of European prime brokerage at Goldman Sachs, who recently quit going GLC, another large London-based hedge fund. UK investment management group New Star International has appointed André Haubensack as Swiss regional director. He joins from Credit Suisse Asset Management in Zurich where he was responsible for evaluating, selecting and introducing new fund providers to the Credit Suisse distribution network. He was also one of the founding members of “Fund Lab”, which has become a well-known European fund supermarket. Howard Flight, the former deputy chairman of the UK Tory party, has been appointed senior advisor and consultant of Kinetic Partners, a professional services firm focusing on the investment management industry. Despite his stint in politics, Mr Flight is no stranger to the world of finance. He was the former chairman of Investec and was a founder of Guinness Flight, which merged with Investec in 1998. Kinetic Partners was established at the beginning of 2005 and is a joint venture between Chiltern, a UK-based tax and wealth management firm, and Raymond O'Neill, David Butler and Julian Korek, former financial services partners at management consultants RSM Robson Rhodes. St James’s Capital, the UK wealth management group, has recruited Robin Chatterton to be marketing director; the position is a new one. Mr Chatterton joins from Cadbury Schweppes where he was global advertising development director. The wealth manager has also recruited Paul Wilson who joins as divisional director of corporate markets. Mark Lund, chief executive, said in a statement that the appointments came as the company was raising its profile “in the wealth management market with both individuals and corporates”. Merrill Lynch Global Private Clients has hired Hugh Roberts to work in operational and strategic decision support. Mr Roberts joins from Unilever, where he was on the Unilever management trainee programme. Northern Trust has appointed Jim Trotter as head of investment risk and analytical services. He replaces Jan Nicolaou who has been made head of strategic development within the IRAS team in a newly created role. Mr Trotter joined from Investit, where he was a principal consultant in the performance and risk division. Prior to this, he spent five years at Merrill Lynch Investment Managers where he rose to be head of performance and portfolio analysis team. Both Mr Trotter and Mr Nicolaou will report to Nigel Bloomer, the head of the asset servicing group’s client service team in London, and Paul D’Ouville, the global head of IRAS in Chicago. Northern Trust has also appointed Frans Hofkens, Christophe De Brabanter and Dennis Presburg as senior client service professionals to focus on the firm’s growing Dutch custody client base. All three will be based in London initially, reporting to Paul Cutts, head of the asset servicing group’s relationship management team for Europe, Middle East and Africa. London-based Platinum Capital Management has appointed Bina Sanghvi as its new chief operating officer. Ms Sanghvi was formerly the group finance director and chief operating officer at Attica Alternative Investment Group, a prominent London-based fund-of-hedge fund firm. Jennet Davies, the head of the private client practice of Jones Day in London, is to join Withers as a partner, advising high net worth individuals on UK tax and estate planning. Ms Jones will join the London office of Withers in early September. The departure effectively means that Jones Day plans to axe its private client practice in London, which it inherited when it merged with Gouldens in 2003. Headhunters, Heidrick & Struggles, has appointed Maggie Henderson-Tew and Frank Hallmeyer to lead the London-based asset and wealth management practice in Europe. Ms Henderson-Tew joins from the firm's Hong Kong office and Mr Hollmeyer from Armstrong International, where he was a partner. North America Chicago-based PrivateBank and Trust Company, a subsidiary of PrivateBancorp, has appointed Richard Powers and Susan Vonder Heide to its wealth management department. Mr Powers joins from RSM McGladrey, where he was head of investment planning. At PrivateBank he will head investment planning and investment management services. Ms Vonder Heide joins from LaSalle Bank where she was a senior vice president in the global trust services department; she will be in charge of operations, administration and compliance for the wealth management department at PrivateBank. Bank of America has appointed Regina Sullivan as a compliance executive for its global wealth and investment management business. Ms Sullivan joins from Fidelity Investments, where she was head of product research and implementation and non-standard oversight. She will report directly to Charles Bowman, a senior compliance executive, and be located in Boston. HSBC Private Bank in the US has hired William Criss and Richard Catterton as managing directors in its San Francisco office. The hires are designed to enhance the bank’s West Coast presence. Both join from Deutsche Bank Private Wealth Management. US wealth management firm Stanford Group Company announced plans to open a new private client services office in the southern US city of Atlanta. The wealth manager has appointed Julian Bradham, former branch manager of Smith Barney in Atlanta, to head up the new office. Stanford said it plans to hire up to 18 financial advisors for the new office. In the last year Stanford has opened offices in Memphis; Longboat Key, Florida; Dallas and Boca Raton. Latin America & the Caribbean Offshore-specialist lawyers, Ogier, have appointed Gray Smith as a partner and head of its London office from 1 September 2005. Mr Smith will provide Cayman Islands legal services to clients from the firm’s European offices. Mr Smith has worked in Cayman Island lawyers Maples and Calder’s Hong Kong, Cayman Islands and London offices, and most recently was the partner in charge of investment funds in the firm’s London office and a management committee member. His areas of expertise include investment funds, private equity, fund-related financial products, structured finance and corporate. Asia-Pacific JP Morgan Private Bank has appointed Martyn Goosen as head of its newly created Japanese wealth management business based in Tokyo. Mr Goosen was previously head of the private banking business for JP Morgan in Southeast Asia. Kwang Kam Shing, head of investments within JP Morgan Private Bank in Singapore, will take over Mr Goossen’s position in Southeast Asia. According to a statement from the bank, Mr Goossen has spent more than 17 years with JP Morgan Private Bank, and has been working in Asia since 1978. And Ms Kwang joined JP Morgan in Singapore eight years ago and has 15 years of experience in the financial industry in Singapore and Hong Kong. Citigroup has appointed Wayne Yang as managing director and head of Citigroup global wealth management for Australia and New Zealand. The position is a new one. Mr Yang will report to Deepak Sharma, chief executive of Citigroup global wealth management, Asia-Pacific and Middle East, and, on country franchise and regulatory matters, to Les Matheson Citigroup country officer for Australia. Mr Yang has worked for Citigroup’s private bank for more than 15 years. His most recent role was head of the Indonesian business where he helped the business earn the title Best Private Bank in Indonesia. Citigroup Private Bank has also appointed Allen Tan as its country head for Malaysia. Alston Beinhorn, Citigroup Private Bank global market manager for Singapore, Malaysia and Brunei, said that they were looking forward to Mr Tan's stewardship in expanding Citigroup's private banking business and market share in Malaysia, as wealth management was a major growth sector in Malaysia. Mr Beinhorn said Mr Tan's appointment was also timely as the financial sector regulations were being eased in Malaysia. London-based billion dollar fund of fund and research firm, Forsyth Partners, has appointed Chi Hao Lee as head of sales in Hong Kong and Singapore. He will focus on marketing Forsyth's products to private banks, family offices and high net-worth investors in the region. Mr Lee previously co-founded and co-managed the Asian hedge fund desk at DBS Vickers after having spent five years as an analyst with Daiwa. The Middle East Abdul-Majid Shoman, the chairman of Arab Bank, died in early July. He was in his early 90s. His father, Abdul-Hamid Shoman, founded Arab Bank in Jerusalem in 1930. After Israel annexed the city in 1967, the family moved to Jordan, where Arab Bank is now the largest financial institution. Mr Shoman was from a prominent Palestinian family from the West Bank town of Beit Hanina. The first branch of the Arab Bank was established in Jerusalem in 1930. The bank was a symbol of Palestinian aspirations, representing a drive to create financial institutions for a new nation. The bank has a large private banking presence in Switzerland and has offices in Zurich and Geneva.

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