A look back at the most popular stories on thewealthnet last week...
10.
Proponents of ESG investing often argue this strategy is not incompatible with high profitability, Ian Orton writes.
If nothing else, firms that incorporate ESG-related factors within their business models should be more sustainable. And this should increase the probability of generating profits over the longer term.
So what should be made of recent data released by the Bureau of Economic Analysis (BEA) that shows US profit margins are still near record highs, despite a slowing economy and widespread inflation.
Does this provide a vindication of the ESG corporate model? Or does it suggest something else? [Read more]
9.
Jersey based investment manager Oakglen Wealth launched its UK business.
Its new UK arm will be led by Dominic Tayler, who has joined the firm as a managing director.
Mr Tayler has over 30 years of industry experience and was formerly at Quilter Cheviot, where he served as executive director for 10 years.
8.
Liontrust Asset Management confirmed it is in discussions with wealth manager GAM Holding AG to potentially acquire the firm.
The deal would see GAM's investment management business combined with Liontrust's investment management business.
Whilst Liontrust has made an approach to the board of GAM, there is no certainty that this will lead to a formal offer, nor as to the timing or terms of any such offer.
7.
UK inflation fell in March to 10.1 percent but remains “stubbornly high”, Katie Royals reports.
This figure is a drop from February’s 10.4 percent reading but was above consensus expectations of 9.8 percent, which would have provided the first inflation reading under 10 percent since August 2022.
Tom Hopkins, a portfolio manager at BRI Wealth Management, attributed the decline to a year-on-year fall in energy prices and some easing in the food shortages seen in February.
6.
The news that London-listed Liontrust Asset Management is in talks with Zurich-listed GAM Holdings about a possible merger does not necessarily mean that the two firms will combine. The terms and conditions of a possible merger have yet to be determined, Ian Orton writes.
Moreover, as GAM confirmed in a press release issued on April 18, Liontrust is just one firm with whom it is holding discussions.
Nonetheless, it seems very likely that GAM’s days as an independent entity are numbered. [Read more]
5.
The 2023 UK gender pay gap figures have shown that although gaps persist, the wealth management sector is making some progress, Isabel Baxter reports.
Brown Shipley, a Quintet private bank, continued to have the highest mean difference in pay of the firms examined at 60.3 percent this year. Moreover, only 16 percent of its upper pay quartile was made up of women.
This is a small improvement from the 61 percent it posted in 2022, however, the gap was lower in 2021 at 51.7 percent. [Read more]
4.
Weatherbys Private Bank appointed Nick Gornall as an associate director.
Based in London, his appointment is to support the growth of clients and assets across the bank.
Mr Gornall has had a longstanding career in private banking and wealth management.
Most recently he worked at Arbuthnot Latham, where he was head of business development for four years.
3.
Change is perhaps better publicised in other industries. Some even have Netflix documentaries made about them. Take tennis for example, Break Point, a documentary following star players on the competitive circuit, was designed to show tennis in a new light and highlight the ongoing changes in the sport, Katie Royals writes.
It is unlikely – and would frankly be astonishing – any such documentaries will be made about the wealth management industry. Nonetheless, it could be argued the sector is going through a similar period of change.
From cryptocurrency, increased automation, wider adoption of digital software and an increased focus on cybersecurity, there are a lot of technological changes taking place in the wealth management industry. [Read more]
2.
Seven Investment Management (7IM), a London-based wealth management group owned by Caledonia Investments, a London-listed closed-ended investment company, is the latest firm to attract the interest of a putative acquirer, according to media reports.
Inflexion, a London-based private equity firm with around £8 billion of assets under management (AUM), is apparently preparing a bid for the company.
There is no shortage of rumours about potential wealth management mergers and acquisitions, especially in the current environment. [Read more from Ian Orton]
1.
Investec Wealth & Investment’s (W&I) co-heads of private clients left the firm.
Alex Charalambous and Carl Cross will leave the firm on 30 September 2023 and went on gardening leave on 13 April 2023.
Mr Charalambous led its high net worth service for just under a year. He joined the firm in 2019 as regional head and divisional director.
Prior to joining Investec W&I, he was a managing director for Julius Baer for nearly one and a half years and before that a director for RBC Wealth Management for six years.