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.
“With built-in CRM and perfor-
mance attribution, robust security
and compliance controls, and
powerful performance reporting,
we’re ready for what’s next.”
“Make the Move so You’re Ready
for What’s Next.”
Growing your business while controlling costs and reducing risk has never been easier.
Advent Portfolio Exchange,® the integrated portfolio management and client service solution, auto-
mates all phases of the investment management process from marketing to reporting.
It will come as no surprise that more than 100 institutional and HNW asset management ﬁrms have
made the move to APX.
In addition to industry leading reporting, built-in CRM and compliance, APX now includes perfor-
mance measurement and attribution to give you deeper insight into results. And APX gives instant
access to accurate mission-critical data across your ﬁrm, which means you are ready—ready to do
what you do best.
Make the Move
Read a case study and view the APX demo at www.advent.com/move
or call us at 800 833.3626.
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
Produced in association with:
2ND ANNUAL FORUM ON
Moving into the Mainstream:
Investor Insights on Achieving ESG Integration
JANUARY 24, 2008 • UNION LEAGUE CLUB • NEW YORK CITY
This event, produced in association with the Featured Sessions Include:
Social Investment Forum, brings together a
unique mix of institutional investors,
foundations, asset management firms, ● Institutional Investor Decision-Making Processes and
investment banks, alternative investment Engagement Strategies for Responsible Investing
funds and SRI experts who will share real-life
implementation strategies on ESG integration ● How are Foundations Achieving ESG Integration and
as the mainstreaming of responsible investing Aligning Mission With Investments?
continues on its upward curve.
● How To Measure the Performance of Responsible
Investments and Benchmark This Against
Featured ● “Wall Street Goes Green”: The Engagement of Mainstream
Speakers Include: Financial Institutions
Victor De Luca, ● Finding ‘Green Alpha’: Innovative Alternative Investment
President, Jessie Smith Noyes Foundation Vehicles for Responsible Investing, including Socially
Responsible Hedge Funds and Venture Capital
Luther M. Ragin, Jr,
Vice President, Investments, F.B. Heron
Michael Musuraca, “Excellent topics, speakers
Designated Trustee, New York City Employees and overall presentation,”
Retirement System (NYCERS)
- Karen M. Smith, Brandywine Global
Howard G. Rifkin,
Deputy Treasurer, State of Connecticut
1.800.437.9997 www.iievents.com firstname.lastname@example.org
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
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.
NOW GET private asset management ON FRIDAY!
Paid subscribers now have access to a PDF of the upcoming
Monday’s newsletter on PAM’s Web site Friday afternoon before
5 p.m. EDT. That’s a 64 hour jump on mail delivery, even when
the post office is on time! Read the news online at your desk or
print out a copy to read at your leisure over the weekend. Either
way, you’ll be getting our breaking news even sooner and
starting your week off fully informed!
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
For More Benefits Visit Our Web Site
Eastern wealthy families. “It is through a personalized, consistent, As an Private Asset Management subscriber, you’re entitled to access Private Asset
Management online at www.iiwealthmanagement.com. Go to
high level of attention and attendance to customers that you www.iiwealthmanagement.com and get the following added BENEFITS:
build trust with this highly demanding segment,” noted Azab. • Breaking News E-mail Alerts • Private Asset Management Library
Citi is up against competition from local banks, as well as from • Live Web Updates • Web Links
• Earlier Delivery • Remote Access
Credit Suisse which launched brokerage services there in 2005.
The region is also emerging as a hot-spot for celebrities DO NOT MISS OUT! Set up your subscriber password today.
Simply contact us at email@example.com or call us
purchasing homes and as a vacation spot for the rich. at 1-800-715-9195 between 8 a.m. and 6 p.m. EDT
To receive email alerts or online access, call 800-715-9195. 11