Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 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 Mohammed Azab (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 during the week for breaking news and updates.
  2. 2. Private Asset Management October 22, 2007 At Press Time Citi GWM Taps Barclays CEO To EDITORIAL PUBLISHING Run Asia-Pacific Unit… TOM LAMONT Editor COLIN MINNIHAN Publisher (212) 224-3268 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 (212) 224-3099 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 (212) 224-3896 Managing Editor 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 Senior Reporter 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 Reporter He replaces Samir Raslan, who moved to head Central and Eastern (212) 224-3255 SUBSCRIPTIONS/ Europe, Middle East and Africa for Citi GWM. It could not be determined KRISTEN OLIVERI ELECTRONIC LICENSES Associate Reporter 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 DAN LALOR Director of Sales [New York] Calls to a Barclays spokesman on replacement plans were not returned by (202) 393-0728 (212) 224-3045 press time. KIERON BLACK Sketch Artist BRANDON NICKERSON Account Executive (212) 224-3824 PRODUCTION …While Private Banking Duo Leave Firm DANY PEÑA Director THEODORE HEALEY Account Executive [London] (44-20) 7779-8704 Nancy Lambert, former managing director with Citigroup Private Bank, and LYNETTE STOCK, DEBORAH ZAKEN Managers REPRINTS 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 (212) 224-3675 JAMES BAMBARA, JENNIFER BOYD While at Citigroup, Lambert led a team of approximately four and was the Associates head contact on client accounts. Most recently, Lambert reported to Global JENNY LO CORPORATE Web Production & Design Director Wealth Management ceo Sallie Krawcheck and previously to John Leto and MARIA JODICE GARY MUELLER Chairman & CEO Wayne Yang, then-global co-market managers for Manhattan. Leto left the firm Advertising Production Manager (212) 224-3267 CHRISTOPHER BROWN President 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, JESSICA SOMMAR Winter Lands At Goldman Editor, Business Publishing (212) 224-3272 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 E-mail: 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: 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.
  3. 3. “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 or call us at 800 833.3626.
  4. 4. Private Asset Management 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 Boulder Office 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. 5. October 22, 2007 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. Andy Wunsch 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
  6. 6. Produced in association with: 2ND ANNUAL FORUM ON RESPONSIBLE INVESTING 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 ‘Traditional’ Portfolios? 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 Foundation 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, Investment Management Deputy Treasurer, State of Connecticut 1.800.437.9997
  7. 7. October 22, 2007 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. Family Office 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 allocation, alternatives 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. 8. Private Asset Management 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. 9. October 22, 2007 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. Worries Wealthy “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!
  10. 10. Private Asset Management 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. 11. October 22, 2007 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 Go to high level of attention and attendance to customers that you 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 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 —Kristen Oliveri To receive email alerts or online access, call 800-715-9195. 11
  12. 12. Private Asset Management 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 Northern California. 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 banking business. 12 ©Institutional Investor News 2007. Reproduction requires publisher’s prior permission.