A look back at the most popular stories on thewealthnet last week...
10.
KPMG UK appointed Neil Connor as head of its asset management practice.
He replaced Ben Lucas who has left the role after around nine months to become chief executive at Amundi.
Mr Connor is a partner in KPMG UK’s financial services deals team, advising UK and global businesses on strategy and mergers and acquisitions (M&A).
9.
Last week’s news about the Investec and Rathbones “combination” further fuelled existing conversations about consolidation in the wealth management sector. There appears to be a growing consensus that the number of firms operating in the industry is shrinking as more consolidation takes place, Katie Royals writes.
The dictionary defines consolidation as the action or process of combining a number of things into a single more effective or coherent whole.
Therefore, from the talk among the industry, you would presume the number of wealth management firms is decreasing in favour of larger firms. [Read more]
8.
The Financial Conduct Authority (FCA) ordered a wealth management firm to cease operations, while the High Court has appointed interim managers and made an arrest.
WealthTek – which also trades under the names Vertem Asset Management and Malloch Melville – must immediately cease carrying on all regulated activities, following “serious regulatory and operational issues coming to light”.
As a result, the FCA and the High Court has appointed Shane Crooks, Mark Shaw and Emma Sayers of BDO as interim managers.
7.
Societe Generale and its UK private bank, SG Kleinwort Hambros, have formed “one of the largest” UK-based teams focused on clients with interests in France and French speaking Europe.
The team will also look after wealthy French individuals and their families living in London.
In addition to traditional private banking services, the team will also offer bespoke services including property, wine investments and vineyard banking, art, lifestyle interests and passion investing.
Clients will be able to receive verbal investment services in French or English as desired. [Read more]
6.
Brooks Macdonald increased funds under management (FUM) by 3.5 percent in Q3 2023.
FUM rose from £16.2 billion at 31 December 2022 to £16.8 billion at 31 March 2023.
This is also a 7.2 percent increase in the year to date, with FUM standing at £15.7 billion at the end of June.
Net flows remained positive at £0.4 billion for the quarter and investment performance continued to be positive despite volatile markets.
5.
Private equity firm Inflexion was reported to be preparing a takeover bid for Seven Investment Management (7IM) as part of an auction of the boutique asset manager.
London-listed Caledonia Investments has owned 7IM since 2015 and, according to media reports, is looking to sell in a formal process that could begin next month.
At the time, Caledonia paid around £100 million for 7IM.
4.
Graeme Brock
Waverton Investment Management made four new appointments in its Glasgow office.
This comes as the firm continues to grow its presence in Scotland.
Graeme Brock, Roger Haxton, Lauren Craig and Charlotte Ayre all joined from Evelyn Partners.
Mr Brock and Mr Haxton joined Waverton as portfolio managers and directors.
Both will be responsible for a range of clients, primarily UK-based wealthy individuals and families, with portfolios ranging from individual savings accounts, to self-invested personal pensions, trusts, charities and corporate accounts.
3.
Goldman Sachs appointed Nishi Somaiya as its global head of private banking, lending and deposits.
She moved into wealth management from her current role as global co-head of growth equity.
Following Ms Somaiya’s promotion, Darren Cohen and Stephanie Hui will continue as global co-heads and co-chief investment officers of growth equity.
2.
Ultra-high net worth (UHNW) investment firm Azura hired Anthony Kontoleon as head of Americas and global head of strategic opportunities.
He is also a partner at the firm and is based in New York.
Mr Kontoleon joined from Swiss bank Credit Suisse after over 28 years.
At Credit Suisse, he most recently worked as global head of the equity capital markets (ECM) syndicate.
1.
Whatever claims may be made about the planned combination of Rathbones and Investec Wealth and Investment (Investec W&I), one fact that cannot be denied is both firms have very similar client bases, Ian Orton writes.
According to data included in the presentations that accompanied the announcement of the planned combination, the bulk of both firms’ business is generated from the core affluent and rich customer segments.
Clients with less than £5 million of assets account for 70 percent of both firms’ business as measured by the size of the client relationship by value. Richer clients account for the remaining 30 percent.
Both firms also have a relatively large number of low value client relationships.