1. OCTOBER 22, 2007 CITI NAMES DUBAI HEAD; TO FOCUS ON FAMILIES
VOL. XIV, NO. 22
Citi Private Bank has appointed Mohammed Azab as executive director
Winter Takes New Spot and chief officer of its United Arab Emirates hub, who will build out its
At Goldman private banking platform to focus on attracting Middle Eastern families.
Clark Winter, former Citigroup chief The firm, which has private banking offices in the region, is expanding its
global investment strategist who left platform to keep pace with the exceptional wealth there in the past
last spring, joins Goldman Sachs decade, Azab told PAM.
Private Wealth Management division as
director of portfolio strategy
Azab will oversee Citi’s offices in Abu Dhabi, Dubai, Bahrain, and
(see story, page 2) Kuwait, and plans to scout out new families and enhance existing
relationships, leveraging its 50-year presence in the Middle East. The firm will offer standard
Firms & Services investment, trusts and estates and business succession planning for merchant families largely
Citi Private Banking Duo Departs 2 (continued on page 11)
SunTrust Expands Client Roster 4
National City Appoints Heads 4 Three-Year Growth Plan…
Merrill Duo Jumps To Janney 5
Wachovia Exec Joins Morgan 5
WACHOVIA WM MAKES YEAR-END PUSH
Wachovia Wealth Management is in the midst of a three-year plan to double its business,
Family Office and will add at least 45 relationship managers, specialists and directors in various regions by
MFOs Rely On Referrals 7 year-end. It will add staff across all three WM units—specifically targeting California,
Offit Appoints CIO 8 Arizona, Texas and New York.
Threshold Launches New Platform 8 Morrison Creech, managing executive of Private Banking, told PAM the majority will
MFOs Team Up With Memoirs 8 join the Private Banking division, catering to $250,000-$5 million in investable assets. The
Sageworth Doubles In Growth 8 Wealth Markets division, targeting $5-50 million in investable assets, and Calibre, the family
office advisory group focused on the above $50 million crowd, will see new hires as well.
Research “The market we serve is expected to grow 30% in the next three years,” said Creech,
Rich Look For Trust 9
referring to clients with $250,000 to $5 million in investable assets.
Wining and Dining (continued on page 11)
Wilmington Trust Holds
Museum Soiree 10 U.S. TRUST, BOFA LAUNCHES $25MM
Departments NATIONAL AD CAMPAIGN
On The Move 10 U.S. Trust, Bank of America Private Wealth
Heidi Nedwurth 12 Management has rolled out a $25 million national and
COPYRIGHT NOTICE: No part of this publication may local print and broadcasting campaign—the most
be copied, photocopied or duplicated in any form or by extensive advertising effort that either the former U.S.
any means without Institutional Investor’s prior written
consent. Copying of this publication is in violation of the Trust or Bank of America’s PWM unit has undertaken
Federal Copyright Law (17 USC 101 et seq.). Violators
may be subject to criminal penalties as well as liability
to date. The ads, designed to underscore the changing
for substantial monetary damages, including statutory face of wealth, debuted nationally on Oct. 8 as the first
damages up to $100,000 per infringement, costs and
attorney’s fees. Copyright 2007 Institutional Investor, campaign since the U.S. Trust/Bank of America
Inc. All rights reserved. ISSN# 726-98790 acquisition finalized in July.
For information regarding subscription rates
and electronic licenses, please contact Dan Lalor at
Aimed at existing and prospective U.S. Trust clients, the ads will run in 50 markets across
(212) 224-3045. (continued on page 11)
Check www.iiwealthmanagement.com during the week for breaking news and updates.
2. Private Asset Management www.iiwealthmanagement.com October 22, 2007
At Press Time
Citi GWM Taps Barclays CEO To EDITORIAL PUBLISHING
Run Asia-Pacific Unit… TOM LAMONT
Citi Global Wealth Management has tapped Nigel Sze, former STEVE MURRAY
Deputy Editor ANTHONY DEROJAS
ceo of Barclays International and Private Banking for Asia, as head of WENDY CONNETT
Senior Marketing Manager
investments for Citi GWM for the Asia-Pacific region. Sze will focus on Executive Editor
(212) 224-3979 LAURA PAGLIARO
products and building up Citi’s investment platform in key onshore markets MARIANNE NARDONE
Associate Marketing Manager
including China, India, and Korea. (212) 224-3610 VINCENT YESENOSKY
Senior Operations Manager
Sze, who reports to Kaven Leung, ceo of Citi GWM Asia Pacific, is Hong Kong- MADALINA OBOGEANU (212) 224-3057
based and oversees capital markets, structured products, discretionary investments (212) 224-3012 DAVID SILVA
Senior Fulfillment Manager
and portfolio counseling activities for both Citi Private Bank and Smith Barney. ALEJANDRA KIM (212) 224-3573
He replaces Samir Raslan, who moved to head Central and Eastern (212) 224-3255
Europe, Middle East and Africa for Citi GWM. It could not be determined KRISTEN OLIVERI ELECTRONIC LICENSES
One year - $2,385 (in Canada add $30
as PAM went to press last week who Raslan, who joined Oct. 1, replaced or (212) 224-3934
postage, others outside U.S. add $75).
whether the post was new. STANLEY WILSON
Washington Bureau Chief
Director of Sales [New York]
Calls to a Barclays spokesman on replacement plans were not returned by (202) 393-0728
press time. KIERON BLACK
…While Private Banking Duo Leave Firm DANY PEÑA
Account Executive [London]
Nancy Lambert, former managing director with Citigroup Private Bank, and LYNETTE STOCK, DEBORAH ZAKEN
Beatriz Pallares, former v.p., have left the firm. Lambert and Pallares, who both DEWEY PALMIERI
MICHELLE TOM, MELISSA
could not be reached, joined Citigroup from U.S. Trust last September. ENSMINGER, BRIAN STONE, Reprint & Permission Manager
JAMES BAMBARA, JENNIFER BOYD
While at Citigroup, Lambert led a team of approximately four and was the Associates firstname.lastname@example.org
head contact on client accounts. Most recently, Lambert reported to Global JENNY LO
Web Production & Design Director
Wealth Management ceo Sallie Krawcheck and previously to John Leto and MARIA JODICE
Chairman & CEO
Wayne Yang, then-global co-market managers for Manhattan. Leto left the firm Advertising Production Manager
(212) 224-3267 CHRISTOPHER BROWN
this past summer and Yang is working with Citigroup in Asia (PAM, 7/16). A
ADVERTISING AND STEVE KURTZ
Citi spokesman declined to comment on circumstances surrounding the BUSINESS PUBLISHING Chief Operating Officer
departures. It could not be determined where Lambert and Pallares landed. JONATHAN WRIGHT ROBERT TONCHUK
Publisher Director/Central Operations & Fulfillment
(212) 224 3566
Customer Service: PO Box 5016,
Winter Lands At Goldman Editor, Business Publishing
Brentwood, TN 37024-5016.
Tel: 1-800-715-9195. Fax: 1-615-377-0525
UK: 44 20 7779 8023
Clark Winter, former chief global investment strategist for Citigroup Global PAT BERTUCCI, MAGGIE DIAZ,
Hong Kong: 852 2842 6910
LANCE KISLING, Associate Publishers
Wealth Management who left in the spring, has joined Goldman Sachs Private Editorial Offices: 225 Park Avenue South,
LESLIE NG New York, NY 10003.
Wealth Management as director of portfolio strategy. The news was announced Advertising Coordinator Tel: 1-212-224-3979.
(212) 224-3212 Email: email@example.com
in an internal memo obtained by PAM, written by PWM ceo Peter Scaturro and Private Asset Management is a
Sharmin Mossavar-Rahmani, cio. general circulation biweekly. No
statement in this issue is to be construed
Winter will focus on developing relationships with non-U.S. clients, while as a recommendation to buy or sell
securities or to provide investment advice.
working closely with Jeff Goldenberg, managing director, who has exclusive focus Private Asset Management ©2007
Institutional Investor, Inc. ISSN# 726-98790
on the U.S. In the memo, Scaturro also noted that Manhattan-based Winter will Copying prohibited without the
take on a series of semi-annual outlook meetings with clients from the U.S., Latin permission of the Publisher.
America, Europe, the Middle East and Asia.
Winter and Scaturro had worked together when both were at Citi, after the firm
purchased Winter’s international high-net-worth investment firm Winter Capital.
Winter, who was not replaced at Citi, was one of several departures after Sallie
Krawcheck took over the reins at Citi GWM early this year (PAM, 4/16). Calls to
Winter were referred to a spokeswoman who declined an interview.
2 ©Institutional Investor News 2007. Reproduction requires publisher’s prior permission.
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4. Private Asset Management www.iiwealthmanagement.com October 22, 2007
Firms & Services
Schwab Donates To Texas Tech know each other and recommend SunTrust. “NASCAR drivers
are big fans of country music, and country music stars are big
Schwab Institutional has donated $1 million to Texas Tech
fans of NASCAR,” Carroll said. The firm offers standard wealth
University earmarked for its Division of Personal Financial
management services, including lending, and subdivided PWM
Planning, one of the largest financial planning divisions in the
based on client professions and family business owners.
country. The donation will fund research to attract college
students to the wealth management industry and to add a new
teaching facility. The unit, run by Dean Linda Hoover and National City Names New Heads
associate professor Deena Katz, will also focus more on National City’s Private Client Group has
recruiting diversity candidates. “We’re looking to attract diverse named Roy Wagman director of Private
people to the program, especially women,” said Katz. Banking and Gregory Jelinek chief credit
The announcement was made at Schwab’s 20th anniversary officer. Jelinek, formerly head of Business
event, held at the NASDAQ Marketsite at 4 Times Square in Banking at the firm, replaces Wagman
Manhattan. Coined A 360º Look at the Trends Shaping the RIA who held the Cleveland-based chief credit
Industry, panelists discussed industry trends and invited 80 guests to officer post. Wagman stepped into a new
the evening reception. Schwab will also donate $25,000 to Roy Wagman
post, based in St. Louis, created to provide
University of California at Irvine to support and promote financial
more customized services for high-net-worth clients,
planning education, selected also because of its focus in this arena.
according to a spokeswoman.
Wagman is responsible for supporting and educating the
Getting On The Court…
financial advisors within the Private Client Group and
SunTrust Banks Broadens Sports & developing new initiatives. Wagman, a 31-
Entertainment Client Reach year veteran of Bank of America, joined
National City in 2005. Jenelik, who joined
SunTrust Banks is expanding the client roster within its Sports &
National City in 1986, oversees the team’s
Entertainment unit, going after golf, tennis, Major League
credit services. The firm’s PCG works with
Baseball and National Basketball Association professionals. It is
high-net-worth individuals and families with
also leveraging its foothold with country music stars to attract
$1 million or more in investable assets. Calls
other music industry professionals. Gregory Jelinek
to the pair were referred to the spokeswoman.
The firm, which has subdivided its Private Wealth
Management division into seven units (PAM, 8/13) under
the direction of PWM head Mark Peters, has a 30-year First Western Launches
history with advising country music stars often in the early
part of their careers. Thomas Carroll, managing director and
head of the Atlanta-based S&E unit, said the firm is adding First Western Trust Bank has expanded its presence in Colorado
urban and Latin music artists to its client base—gained with an office in Boulder. The 10-person office, which opened
mainly via word of mouth. Oct. 3, provides private banking, investment management,
It has added roughly 14 NFL pros, as well as clients from personal trust and wealth management planning to high-net-
other major sports arenas, and is leveraging its background in worth individuals. Bryant Reber, chairman of the Boulder office,
managing wealth for clients with short careers and sudden and managing director Nancy Stevens, previously ceo and
success. “The pendulum swings here quickly, with an average account relationship manager, respectively, for Denver-based
career span of about 3 1/2 years for an NFL player, so we try to wealth management firm Reber/Russell—which First Western
instill a discipline as early as we can,” Carroll said, declining to purchased last fall—are running the office.
elaborate on specific client growth figures. Reber is responsible for overall leadership, business oversight and
The firm has also built satellite offices in Miami to capture strategic planning. As managing director, Stevens oversees client
Latin music clients, Atlanta to cater to urban music artists, and service, client development, employee mentoring and strategic
Mooresville, N.C. and Daytona Beach for its growing NASCAR guidance. The staff consists of eight former Reber/Russell
clients. The firm has locked in this group, Carroll said, because employees and two employees from First Western in Denver.
many NASCAR drivers and country music professionals often Stevens said that First Western had plans to open the Boulder
4 ©Institutional Investor News 2007. Reproduction requires publisher’s prior permission.
5. October 22, 2007 www.iiwealthmanagement.com Private Asset Management
hub since its acquisition of Reber/Russell in September, eyeing really excited to have someone with Cory’s level of experience.”
the region for its wealthy population and strategic expansion. The Boston office has $40 million in annual revenue, and $8
“There aren’t that many banks that combine private banking and billion in assets under management.
investment management services, and this provides us with a
competitive edge,” said Stevens. First Western, with over
$1.35 billion in assets under management, has offices in Denver,
Capital Market Consultants,
Cherry Creek and Fort Collins, Colo. Adhesion Form Partnership
Chicago-based Capital Market Consultants, an investment
Janney Taps Merrill Duo To Run management firm, has linked up with Adhesion Technologies’
WealthADV platform to provide multi-manager strategies for its
Boston Satellite Hub wealth management advisors.
Janney Montgomery Scott has launched a The joint platform provides research and guidance on
wealth management Boston satellite office selecting specific managers from CMC, as well as WealthADV’s
in Falmouth, Mass. and tapped Eric back office and unified managed account offerings. “Adhesion
Asendorf and Janet Chadie from Merrill does not have the level of research that we have, and in turn we
Lynch to run it. The pair, which will cater are not a technology firm, and advisors need both. It’s like
to high-net-worth residents in the Cape vanilla and chocolate, a wonderful combination,” said John
Cod region, report to Andy Wunsch, Erard, partner of distribution at CMC.
complex manager in Boston. Michael Steir, president and ceo of Adhesion, told PAM that
Asendorf, senior v.p. of investments, will act as a financial the partnership is good for advisors who are breaking away from
consultant overseeing new client business in the private client large wirehouses and broker dealers to go independent—yet still
group. He joins with $200 million in assets under management. need back office technology and a range of research and
Chadie will advise on retirement and financial planning. The investment products.
firm may bring on an additional advisor, Wunsch said.
Calls to the pair were referred to Wunsch. “After building and
maintaining an advisory practice in the same location for 26 Morgan Stanley Taps
years, Eric wanted to be associated with a regional firm with a Wachovia Exec
culture suited to his clients and team,” he said. Morgan Stanley Global Wealth Management Group has tapped
Steven Stahlberg, a former managing director and Sacramento
Merrill Names Boston Director market manager for Wachovia Securities, as district manager for
Cory Little has been named managing director for Merrill the Sacramento/Central California region. Stahlberg will preside
Lynch’s Private Banking and Investment Group in Boston, over 22 branches in California including Sacramento, Napa,
replacing Doug Revere at the office based at 1 Federal Way. Walnut Creek, Fresno and Oakland.
Little, who will also continue in her role as head of sales in Stahlberg, based in the Roseville office, will report to
Boston, will draw on the hub’s advisory group, private bank, and Margaret Black, Western division director. The position
institutional sales division for the Northeast region to provide has been vacant for some time, and Stahlberg was brought
broader resources and services for clients. Revere is a managing on for his extensive wealth management experience, according
director with the advisory group. to a Morgan spokeswoman, who declined to name who
The Boston PBIG is also looking to make an aggressive push Stahlberg is replacing.
to hire new staff and recruit clients in the region. Little told Additionally, Morgan has brought on several financial
PAM she will oversee six private wealth advisor teams with plans advisors throughout the country. R. William Chaffin and
to tap other internal and external teams to accomplish growth Kent Engdahl, former A.G. Edwards advisors, joined the
plans. Little reports to managing directors Jeff Penney and Doug Rancho Bernardo, Calif. office with a combined $168 million
Mallach for equities and fixed income, Jennifer Povlitz, in assets under management. Duo Charles Crilly and
managing director of PBIG’s Eastern Division and John Thiel, Quentin Elliot of A.G. Edwards jumped ship to the Hartford,
managing director, head of PBIG. Conn. office with a combined $183 million in AUM. The
“We were looking for someone well respected and from the Paramus, N.J. office tapped Frank Fava and Christopher
inside who knows Boston,” said Povlitz, regarding Little’s Amato from Smith Barney. They join with a combined $76
appointment. “It’s such a unique opportunity there and we’re million in AUM.
To receive email alerts or online access, call 800-715-9195. 5
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7. October 22, 2007 www.iiwealthmanagement.com Private Asset Management
Firms & Services (cont’d)
UBS Nabs Lehman Trio For alternative investments, and sophisticated equity products made
them the right fit for the new office. “They have a significant
Chicago Hub number of relationships in our targeted demographic,” said
UBS has tapped three top financial advisors from Lehman Drescher, referring to the ultra-high-net-worth in the region.
Brothers, hiring Mark Wiktor, F. Michael Covey, and Thomas The office, in its early stages of development, currently has 20
Kane as senior v.p.s for its new wealth management office in financial advisors with plans to double that number over the
Chicago. The trio, former financial advisors at Lehman in next three years.
Chicago, report to Dennis Drescher, managing director. A Lehman spokesman declined to comment on the
Drescher said their knowledge of trusts and estates, trio’s departure.
Help Wanted… preparation were outsourced at 36.3% and 42.5%, respectively.
Overall, the number of outsourced services inched up this year, as a
MFOs Focus On Basics, way for MFOs to
Rely On Referrals improve their Sources of New Clients
Multi-family offices are getting back to basics in terms of in- bottom line,
Referrals from clients 45.3
house service offerings, Casey noted. Referrals from other professionals (e.g. CPAs) 25.5
still grapple with For the first Business development (e.g. sales) 9.2
Firm’s Biggest Challenges
finding top talent, and time, the Alliance Contacts via charitable or community activities 4.9
WEIGHTED SCORE Joint ventures 2.4
rely predominantly on surveyed methods
Advertising and public relations 1.7
Human capital 60 for sourcing new
word-of-mouth to Other 10.9
Managing Growth 33
grow business. Raising Awareness 24
clients—with Total 100.00%
According to the Growing the business 23 MFOs reporting Source: Family Wealth Alliance
Family Wealth Alliance’s Technology 19 that 45% of new
Profitability 14 business comes from existing client referrals (see related chart).
2007 Multifamily Office
Outsourcing and partnering 12
Study, MFOs increased And while MFOs may be talking about a marketing or direct
Technology (client reporting) 6
their in-house financial Enhancing investment offering 5 mail campaign, a paltry 1.7% said advertising or public relations
planning, asset Succession planning 3 was a source for new business. “It’s still a referral business, but we
Other 6 expect that to change as you get more sophisticated, bigger firms
and charitable counseling Based on a weighted score of 100 in the industry who want to develop a brand,” Casey said.
Source: Family Wealth Alliance
services by roughly 10% Finding top talent, especially for the cio role, is again an
or more—and surprisingly concentrated little on non-financial MFO’s biggest challenge—with firms giving staffing a weighted
offerings like succession planning or family governance. score of 60 versus 47 for human capital issues last year (see
The survey also found that families can ease off on bill- related chart). Casey said the challenge is to find seasoned
paying and concierge services—often an outsourced and relationship managers to handle the extremely wealthy, who are
unpopular item on the MFO menu—as only roughly 7% of not only versed in investments but also tax concerns and
clients use the offerings. Firms distinguished themselves via generational planning.
traditional investments this year. “The services this year have to MFOs are often stretched to pay top talent as well.
do with the essential needs of client. I was surprised that more Managing growth also ranked as a higher concern this year,
of them didn’t mention family issues, especially since the firms as new client business is extremely front-loaded and therefore
have a lot of ability in these areas,” said Bob Casey, director of takes a great deal of time and staff to break in a new versus
research with the Alliance. existing client.
Casey noted that financial services, including charitable advisory, [Editor’s Note: This is the second of a two-part survey based on
are not outsourced because of the extremely personal, hands-on The Family Wealth Alliance’s study, surveying 80 North American
nature that a client looks for—although trust services and tax MFOs with multi-generational relationships. ]
To receive email alerts or online access, call 800-715-9195. 7
8. Private Asset Management www.iiwealthmanagement.com October 22, 2007
Family Office (cont’d)
New Role… former portfolio manager for Bank of America Private Client
Services in Seattle, has joined as relationship manager. Kevin
Offit Capital Adds CIO Sheehan, former consultant with Family Office Exchange, has
Todd Petzel has joined newly-launched Offit Capital Advisors as joined as assistant relationship manager. The pair, based in Gig
cio to run its senior investment team. Petzel, who joins from Harbor, report to managing director of family office services Bob
Commonfund Group where he was cio and executive v.p., DeWeese. The firm has $6 billion in assets under advisement,
oversees a six-person research team including Jeffrey Lombardo and has an average client relationship of $125 million in
and Thomas Carrier, partners in the research group. investable assets.
The Manhattan-based wealth management firm has a Threshold may launch a Bay Area office if growh
specialty in global, multi-asset class investments for high-net- continues. “It would bring us closer geographically to our
worth families, as well as for non-profit institutions. Petzel’s
clients, and we’re fairly open to it if it looks like someplace
team provides traditional investment research, with an ax in
that continues to be active,” Phillips said. It will also add a
hedge fund and private equity. The firm was launched last
new business development officer to focus on both bringing
month after chairman Morris Offit split from partner Kathryn
in new business and possible expansion plans next year, based
Hall of Offit Hall Capital Management, to fly solo with his
in Gig Harbor.
sons and co-ceos Ned and Daniel (PAM, 9/10). “We are acutely
Finally, Phillips said the firm is working on a new investment
focused on investments, and there’s a lot for us to do both
reporting technology platform, which it plans to launch next
domestically and internationally,” said Daniel Offit. “Todd had
year. It chose not to completely outsource these services to
managed very large pools of capital in the past, and the way we
measure our client portfolios is similar to how a large provide more customized reporting services for its clients,
foundation manages their assets.” especially those with complex financial pictures.
The Commonfund Group is a management firm catering to Threshold was founded in 1999 by George and Jane Russell,
non-profit investors. who sold the former Frank Russell Company to Northwestern
Mutual and launched the MFO.
To Do List
Threshold Looks To Fill Posts, Memoirs Productions Links Up With
Launch Platform, Eyes Bay Area MFOs To Broaden Reach
Multi-family office Threshold Group has created a business Memoirs Productions, which produces biographies and ethical
development officer role, is searching for a replacement for its wills for clients via DVD documentaries, has recently linked up
departing cio and will launch a new in-house technology with Harris myCFO and Citigroup Global Family Offices to
platform. It is also considering a Bay Area satellite office. produce what it coins Ethical Wills, Corporate Archival, Legacy
The Gig Harbor, Wash.-based firm is looking to replace of Values or Heirloom DVDs.
Jason Taylor, who will leave the cio post later this month Iris Wagner, executive producer and ceo of the Montreal-
after two years for personal reasons, said Chris Phillips, headquartered firm, which serves clients throughout North
director of marketing and business development, who America and markets mainly via word-of-mouth, said it also
declined to elaborate. The firm has been vetting candidates, launched a quarterly newsletter to send to current and
with plans to fill the spot within three to six months, and has prospective clients.
named relationship manager Craig Hamilton as interim cio. Wagner is looking at a production for its first European
“We’re aware of where we are geographically and it takes time. family, and added that clients are often not elderly when they
The Pacific Northwest is not on everybody’s radar as a hub of approach the firm. “One client, who was 41 at the time, saw his
financial services,” Phillips said. Former U.S. Trust executive friends die in 9/11 and said ‘if that happened to me, my kids
Lissa Gangjee has been brought on as head of the Portland would never know who I was,’” she said.
hub, Phillips added. Documentaries range from a 30-minute taped monologue, to
Threshold has been building its client base and AUM this camera shots of a family’s property from the air or a straight
year, at its headquarters as well as Portland and Manhattan hubs, discussion of their philanthropic commitment. Wagner said the
and has added staff to maintain its three-four clients per price tag varies widely depending on the assignment, and archival
relationship manager average going forward. Tim Thomas, quality is guaranteed for 300 years.
8 ©Institutional Investor News 2007. Reproduction requires publisher’s prior permission.
9. October 22, 2007 www.iiwealthmanagement.com Private Asset Management
Pennsylvania MFO Doubles Growth mix, including advisor knowledge, advice and trust level. “As
the market has matured, service quality is seen as a given while
Sageworth, a Lancaster-based multi-family office, trust company
other factors have become more important in determining
and advisory firm, has increased assets under management by
investor loyalty,” said David Thompson, managing director of
over 50% this year, with plans to do the same in the coming year,
Affluent Marketing Service of Rhinebeck, N.Y.-based Phoenix.
solely via word-of-mouth client referral. The MFO, which
The study, which tracks investment patterns and behaviors,
currently has 55 families, was founded in 2000 by six families
surveyed approximately 6,700 affluent investors with $250,000
including a prominent snack food manufacturer, said ceo and
or more in investable assets. Investors were surveyed via an online
one of the founders Tim Brown.
questionnaire over a 10-month period.
The firm caters to clients throughout the U.S. and non-U.S.
citizens with assets overseas, and does not employ sales people or
marketing campaigns as a general rule. The firm has doubled its Economic Weakness
AUM through both existing and new client investments,
although Brown declined to provide current AUM figures.
“We’ve been significantly and rapidly growing, but also very A weakening economy is weighing more heavily on wealthy
selectively, and have a diverse clientele in terms of age, geography investors, resulting in the second consecutive decline for the
and liquidity,” Brown said. The firm’s main focus is investment Spectrem Millionaire Investor Index, tracked by the Spectrem
management, and it also offers estate planning, tax, insurance Group. The index, which measures the investment outlook of
and administrative services and charitable counseling. households with $1 million or more in investable assets on a -
100 to 100 scale with a 200 point spread, dropped four points to
3 in September, its third-lowest level ratio ever.
Research When asked open-ended questions about the most serious
threat to the achievement of their household financial goals,
HNW Placing Greater Emphasis On 19% of millionaires cited the economy as the biggest threat,
Advisor Trust, Performance followed by 8% who cited health-related issues and 7% who
Affluent investors have placed greater emphasis on advisor cited unemployment. The economy was also the biggest
knowledge, trustworthiness and performance in recent years, source of general worry among the affluent, with 18% citing
according to a recent Phoenix Marketing International study. it as the biggest threat, followed by 8% who cited
The study named six elements in the advisor-investor unemployment and 7% who cited health-related issues.
relationship that are key drivers of an investor’s loyalty to an “People are going to the sidelines because they’re not sure
advisor: knowledge, quality of advice, level of trust, the quality of what’s going to happen,” said Tom Wynn, director at
services delivered, performance, and the overall strength of the Spectrem Group, adding that the unstable real estate and
investor’s relationship with the advisor. stock markets contributed to concerns.
In 2003-04, when the market was emerging from a The report noted that the index has lost 17 points since
downturn, affluent investors placed stronger emphasis on basic May 2007. The Spectrem Millionaire Investor Index is typically
elements such as service quality, communications, and ease of drawn from more than 100 monthly interviews of U.S.
doing business with an advisor. As the market ramped up from investors, and include hypothetical questions to determine
2004 to 2006, affluent investors added other elements to the general investment behavior.
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10. Private Asset Management www.iiwealthmanagement.com October 22, 2007
Wining & Dining
The wealth management industry’s soft marketing and client retention activities.
Wilmington Trust Hosts over 80 designers and firms, ranging from design leaders such as
Apple, Inc. and architect Santiago Caltrava, to emerging
Boston Museum Event designers such as Joshua Davis and Jessica Smith. Peter
Wilmington Trust hosted a reception and private viewing of Simmons, president of Wilmington Trust FSB in Boston, was
Design Life Now – the National Design Triennial at the Institute also on hand to greet clients and mark Wilmington’s
of Contemporary Art in Boston. The invitation-only event, introduction to the greater Boston area since acquiring Bingham
which took place on Oct. 17, gathered roughly 280 high-net- Legg Advisers in July. “It’s fortuitous that the sponsorship
worth clients and Wilmington executives with curators and became available around the same time that we established a
members of the ICA. The curators provided a tour of the exhibit presence in Boston,” said Simmons, adding that the exhibit was
which included designs from the last three years in fields like “a little funky, and exactly what we were looking for.”
architecture, furniture, film, graphics, new technologies, The exhibit focused on four principal ideas of the contemporary
animation, science and fashion. design world, which include emulating life, community, hand-
Wilmington is the exclusive sponsor of the contemporary crafted and do-it-yourself design and transformation, according to
American design exhibit at the museum, which opened on Sept. the museum’s Web site. The exhibit was organized by the
28 and will run through Jan. 8. The exhibit features the work of Smithsonian’s Cooper-Hewitt National Design Museum.
On The Move
• UBS has opened its latest Private Wealth Management office in • Wachovia’s Investment Services Group has hired Tami
Atlanta, focused on clients with assets of $10 million and above. Rovall in Dallas/Ft. Worth from Compass Brokerage with
The office, located at 3280 Peachtree Road, includes private $73 million in AUM. In Latin America, Guillermo Santiago
wealth advisors, private bankers, and service personnel and is was tapped for the San Juan office from UBS bringing
headed up by Robert Karem. $77 million in AUM.
• Wachovia’s Private Client Group tapped RBC Dain Rauscher • Morgan Stanley’s Global Wealth Management Group tapped
financial advisors Wayne VanThof with $25.6 million in assets Emilio Funicella as a financial advisor, and Guy Feldman, junior
under management, Martha Killian, Wendy Sydeski with $57.9 associate, from Smith Barney for the Manhattan office. They
million in combined AUM, Thomas Sime with $50.2 in AUM, bring $168 million in AUM, and they report to branch manager
Neil Ruda with $53.4 in AUM, and Edward Lipski with $58 William Van Scoyoc. Jim Bowers and Don Cohen joined the
million in AUM for the Rochester, NY office. Clifford Taylor Arlington, Tx. office with $156 million in AUM from Wachovia
was tapped from UBS with $72.2 million AUM for the Houston Securities. They report to Milton Morse, branch manager.
office, and James Pacholek joined the North Dallas office from • Tim Stinson and John Yackel, former managing director and
Smith Barney with $121.5 million in AUM. The Santa Fe hub director, with SEI, have joined wealth management service
tapped Michael Segura with $55.1 million in AUM from provider Fortigent. Jeffrey Coron, former director with IXIS
Westpark Capital and the Westlake, OH office tapped Jeffrey Asset Management, also joined the firm to take a marketing post
Partridge from Smith Barney with $77.6 million in AUM. focused on Rockville, Md.-based Fortigent’s alternative
Smith Barney also lost Michael McQuilkin with $80 million in investment products. The trio report to Andrew Putterman,
AUM and William Gomberg with $110.2 million in AUM to president and ceo. Knightsbridge Advisors and Kilcullen &
the Anaheim, Calif. office as well as Ralph Noyes with $63.8 Company handled the search.
million in AUM to the Spokane hub.
• Wealth management firm Focus Financial Partners has acquired
• Wachovia Securities Financial Network brought on Jason five firms, bringing a combined $8 billion in client assets to the
Schall and Joseph Chiovarou from UBS for the Daniel Island, Manhattan-based company. The wealth management firms
S.C. office, bringing with $58.4 million in combined AUM. include GW & Wade, Dion Money Management, Lara, Shull &
Susan Roise from Morgan Stanley joined the Minot, N.D. office May, Benefit Funding Services Group and JFS Wealth Advisors.
with $72.3 million in AUM. Focus now has $25 billion in AUM.
10 ©Institutional Investor News 2007. Reproduction requires publisher’s prior permission.
11. October 22, 2007 www.iiwealthmanagement.com Private Asset Management
U.S. TRUST 1968 Bus. Through extensive research, U.S. Trust discovered
(continued from page 1) that the majority of wealthy clients had grown their own
across the country at least through year-end. The print ads are wealth, and attributed their success to their own drive,
running in major national publications, including The Wall prompting the creative concept.
Street Journal, and the Boston-based
television ads are starting to Hill/Holliday collaborated
run on national broadcast with the firm’s marketing
networks. The TV spots are team, led by Anne
slated for CNBC’s Squawk Finucane, BofA chief
Box, CNN after Anderson marketing officer, to
Cooper 360, MSNBC, The develop the brand
Golf Channel, and various positioning and
business and financial news advertising campaign.
cable networks, according to The campaign is part of
a firm spokesman. a larger marketing
The ads are intended to initiative to be launched
convey the message that later this fall for Bank of
U.S. Trust understands and America’s Global Wealth
shares their clients’ values, and Investment
and that clients are the architects of their own success. One ad Management division, which includes investment marketing
features a wealthy U.S. Trust client sitting next to his old 1968 arm Columbia Management. U.S. Trust, BofA has more than
Volkswagen Bus, with the message The most valuable car in his $220 billion in assets under management.
collection isn’t the Ferrari, the Cobra or the Aston Martin, but a —A.K.
CITI NAMES WACHOVIA WM
(continued from page 1) (continued from page 1)
employed in the UAE’s oil and gas businesses. “Middle Eastern Wachovia WM will continue expansion, both in terms of
merchant families are becoming increasingly sophisticated as staff and new client business, in its targeted states throughout
individuals,” said Azab. next year—tacking on Florida as well which it also views a
The firm will also bring private banking and family services to high-growth market. Wachovia WM announced plans in June
its Qatar and Kuwait offices, launched in 2006 and 2007, to double its business, currently at $80 billion in assets under
respectively. As of now, Citi offers only corporate banking management, over the next three years. The firm is also
services in those hubs. Azab said he will target individuals with aiming to break away from its regional reputation. “They are
$10 million and above in investable assets from the Dubai and trying to show the country that it’s no longer just mid-
Northern Emirates markets, the wealthiest regions of the UAE. America they are targeting,” said Rick Peterson, recruiter with
Azab, who started his career at Citi as a credit office in 1981, Rick Peterson & Associates.
recently joined from Arab Bank where he was a UAE country California is a main target with 36 new bankers slated to join
manager. He replaces Mike Morgan, who moved to Singapore as its offices by year-end. A spokesman said the firm’s push into
director of human resources.
Azab noted that it is often difficult for wealth managers, even
from within the region, to establish a trust level with Middle
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12. Private Asset Management www.iiwealthmanagement.com October 22, 2007
California was motivated by the final conversion last week of its director and senior v.p. for Wachovia WM New York. “We’ve
Golden West Financial acquisition, in the works since last made a major commitment to the New York City marketplace
October. “Until recently, we were East Coast and Texas-based, on all levels,” said Giglia. The firm has been touting a recent
but a lot of our effort is going to the Western part of the country lift-out of a six-person U.S. Trust team to its Manhattan
now,” he said. The firm is also looking for a regional director for office (PAM, 10/8). —Alejandra Kim
Phoenix will add four new members to its team, and Texas will
add two. Over the next two weeks, Wachovia will also announce a Quote Of The Week
new regional director for Phoenix, to be promoted out of the East “It’s like vanilla and chocolate, a wonderful combination.”—John
Coast office, although Creech declined to provide the name. Erard, partner of distribution at Capital Market Consultants,
In New York, the firm will grow its 35-member team by discussing the firm’s partnership with Adhesion Technologies to offer
three to four relationship managers in Manhattan, one to two both research and technology for wealth management advisors (see
relationship managers in Long Island, and two trust associates story, page 5).
in both hubs by year-end, said Joseph Giglia, regional
One Year Ago In Private Asset Management
Citigroup Global Wealth Management made a push to expand
HEIDI NEDWURTH’S its private bankers to 118 throughout the country over the course
NOTES of five years. It targeted real estate entrepreneurs and developers,
Heidi Climbs Aboard SeaFair For financial sponsors and business owners, the three wealth sectors.
Art Show [Citi launched Global Wealth Management International and
This weekend I donned my latest Vera Wang, tapped Deepak Sharma, head of the Asia-Pacific and Middle East
naturally not that new line she now hawks at Kohl’s, regions for the private bank in Singapore, to assist in running the
complete with my favorite Christian Louboutin heels effort (PAM, 4/16).]
and hopped about SeaFair, a luxurious art show
aboard a stunning 228-ft mega-yacht docked in • Credit Suisse Private Bank restructured its domestic
business to add satellite branches in U.S. key markets and
Manhattan this month. I perused the American and
divided it into three regions, East, West and Midwest. It
European art galleries weaving throughout the Grand
named long-time managers Matt Gorman, Carey Timbrell
Luxe in search of pieces to add to my already stellar
and Peter Skoglund as the heads of the East and West and
collection—finally deciding on an Earl Cunningham
Midwest regions, respectively.
oil painting for a cool $4 million.
After we attended SeaFair’s opening night charity
gala, as well as a few art events and lectures, my pals Five Years Ago
and I made our way to the ship’s open-air
champagne, wine and caviar lounge. A few Grey
• Mutual fund giants Franklin Templeton Investments and T.
Rowe Associates were expanding the distribution bases for their
Goose martinis and gorgeous skyline views later, I high-net-worth units. For the first time, Franklin Templeton’s
enjoyed lobster braised in a beurre fondue in the Private Client Group made a formal push to distribute its
main dining room. My personal trainer has his work separately-managed accounts through commercial banks and
cut out for him, I’ll say. independent registered investment advisors. [Two subsidiaries of
But the SeaFair isn’t stopping the show in New Franklin Templeton, Fiduciary Trust Company International
York—it’s a 34-city tour cascading up the Eastern and Franklin Advisers, combined efforts and launched a new
Seaboard. When I have to finally pack away my global fixed-income platform, The Franklin Templeton Fixed
peep-toe pumps for the season, I plan to head south Income Group (PAM, 1/26/06).]
for a spin around the Florida Treasure Coast on
February 27—where I’ll be hunting for a new • Eight high-net-worth brokers filed an arbitration claim with
Williem de Kooning to add to my own treasure trove the National Association of Securities Dealers against Prudential
of masterpieces. Securities. The brokers claimed that the firm had breached their
contracts when it left the technology and healthcare investment
12 ©Institutional Investor News 2007. Reproduction requires publisher’s prior permission.