Download - WELLS NAMES WACHOVIA EXEC TO TOP POST

Transcript
Page 1: WELLS NAMES WACHOVIA EXEC TO TOP POST

UBS $1B Team Heads To RBCRBC Wealth Management hassnagged a $1 billion team of advisorsfrom UBS Wealth Management inPhoenix

See story, page 2

Firms & ServicesSilver Bridge Signs On

Development Head 3Baird Taps Teams From Merrill, UBS 3Glenmede Rolls Out Ad Campaign 4HSBC Sponsors Design Fair 4United Capital Holds Webinar 5Deutsche, NY Mag Prep

Charity Gala 7

ResearchAffluent Picky About Terms 7Obama Needs To Focus

On Confidence 7

Family OfficeAshbridge Hires Wachovia Exec 8

Wining & DiningKnightsbridge Readies Holiday Bash 8

DepartmentsGuest Column 9On The Move 11Heidi Nedwurth 12

WELLS NAMES WACHOVIA EXECTO TOP POSTWells Fargo has appointed Wachovia’s David Carroll ashead of the combined bank’s wealth managementefforts including brokerage services, private banking,retirement services, Wachovia Securities, investmentmanagement and trust and estate services.

A memo from president John Stumpf also says there will(continued on page 11)

U.S. Trust Fading AwaySEVILLA-SACASA OUT, MFO HEAD BOLTSBank of America, U.S. Trust Private Wealth Management saw a number of top departureslast week from the U.S. Trust side. President Frances Aldrich Sevilla-Sacasa fell victim to arestructuring and Chris Zander, head of the multi-family office division, jumped ship toManhattan-based Evercore Wealth Management along with several other senior staffers whowill reprise their current roles there.

Metro-Atlantic Division Executive Alan Rappaport and head of credit and lending Bob(continued on page 11)

SCATURRO TO LEAVE GOLDMAN Peter Scaturro, ceo of Goldman Sachs Private Wealth Management, plans to step down atyear end to launch his own wealth management firm either as a startup or via acquisition.

Scaturro, who did not return calls, has been seeking investors for what would likely be aboutique wealth management firm with a multi-family office component. He is also lookingfor executives to staff the effort, which will likely include former colleagues. Whether he hastalked to Frances Aldrich Sevilla-Sacasa, recently let go as president of Bank of America, USTrust Private Wealth Management (see related story below), could not be determined.

(continued on page 12)

HSBC TO GROW CORE OFFICESFollowing a retrenchment earlier this year (PAM, 9/22), HSBC Private Bank is looking tomake a growth push in its remaining offices. It will look to hire teams of private bankers whohave clients with north of $10 million in investable assets. It will focus specifically on SanFrancisco, Los Angeles and New York, said Marlon Young, Manhattan-based ceo of HSBCPB Americas. HSBC shuttered offices in Boston, Washington, Greenwich and Boca Raton.

Young told PAM the firm will look to hire from private banks because bankers take amore holistic approach with clients than brokerages. He declined to elaborate on targets in

(continued on page 11)

COPYRIGHT NOTICE: No part of this publication maybe copied, photocopied or duplicated in any form or byany means without Institutional Investor’s prior writtenconsent. Copying of this publication is in violation of theFederal Copyright Law (17 USC 101 et seq.). Violatorsmay be subject to criminal penalties as well as liabilityfor substantial monetary damages, including statutorydamages up to $100,000 per infringement, costs andattorney’s fees. Copyright 2008 Institutional Investor,Inc. All rights reserved. ISSN# 726-98790

For information regarding subscription rates and electronic licenses, please contact Dan Lalor at(212) 224-3045.

Check www.iiwealthmanagement.com during the week for breaking news and updates.

DECEMBER 1, 2008VOL. XV, NO. 24

PAM120108 11/26/08 1:10 PM Page 1

Page 2: WELLS NAMES WACHOVIA EXEC TO TOP POST

Private Asset Management www.iiwealthmanagement.com December 1, 2008

©Institutional Investor News 2008. Reproduction requires publisher’s prior permission.2

UBS $1B Phoenix Team WalksRBC Wealth Management has lifted the $1 billion Flader

Consulting Group from UBS Wealth Management inPhoenix. The Flader Group is made up of brothers Allan, Michael and BrianFlader, and Chris Young, Jo Lane and Linda Caldwell.

Allan Flader, speaking for the team, told PAM that he decided to move toRBC because he was disheartened by the bureaucracy at his former firm andat large wirehouses overall. “I wanted a firm that had financial stability and,quite frankly, after 22 years of New York-based, Wall Street firms, I wantedsomething different that was more stable with open architecture,” he said.“To me RBC is the perfect in-between. There is a lot of flexibility but youdon’t have to worry about changing the ink in the copy machine ornegotiating a lease.”

Flader also told PAM that he had considered going the independent routebefore settling on RBC, and he predicts there will be more advisors moving fromthe big wirehouses to regional firms as well as those striking out on their own.Compensation did not play into the rationale for moving from UBS, he said. Infact, the team took substantially less money upfront to go to a smaller regionalfirm than if they had moved to another Wall Street firm or large wirehouse,added Flader.

Calls to James Van Steenhuyse, Phoenix branch director, were not returned bypress time. A UBS spokeswoman would only confirm the team’s departure.

Glenmede Trust Launches Ad CampaignGlenmede Trust has launched a nationalmarketing campaign. The print and radiocampaign is running in national and regionalpublications in Philadelphia, New York,Ohio and Delaware, said Susan Worteck,director of marketing. These are locales werethe firm has a major presence.

Four print ads touting the tagline, There’sno substitute for strength and stability, arerunning in The Wall Street Journal andregional publications. The spots feature textthat reads, We are Glenmede—an independentinvestment and wealth management firm—privately owned for over half a century. And, weintend to stay that way.

In small text at the bottom of the ad is director of Private Client Services,Chip Wilson’s contact information. Radio spots are also running through theend of the year.

The firm tapped Boston-based agency Trinity Communications to create theads, along with an internal marketing team led by Worteck. She declined tocomment on the price tag for the campaign, and noted the firm is consideringlaunching a multi-media including TV ads campaign for 2009.

At Press Time

PUBLISHINGMIKE FERGUSPublisher(212) 224-3266

ARCHANA KAPURAssociate Marketing Manager(212) 224-3421

LAURA PAGLIARORenewals Manager(212) 224-3896

VINCENT YESENOSKYSenior Operations Manager(212) 224-3057

DAVID SILVASenior Fulfillment Manager(212) 224-3573

SUBSCRIPTIONS/ ELECTRONIC LICENSESOne year $2,585 (in Canada add $30postage, others outside US add $75)

DAN LALORDirector of Sales(212) 224-3045

DMITRY MELNITCHOUKAccount Executive(212) 224-3317

REPRINTS DEWEY PALMIERI Reprint & Permission Manager (212) 224-3675 [email protected]

CORPORATE GARY MUELLER Chairman & CEO

CHRISTOPHER BROWN President

STEVE KURTZ Chief Operating Officer

ROBERT TONCHUK Director/Central Operations & Fulfillment

Customer Service: PO Box 5016,Brentwood, TN 37024-5016.Tel: 1-800-715-9195. Fax: 1-615-377-0525UK: 44 20 7779 8023Hong Kong: 852 2842 6910E-mail: [email protected]

Editorial Offices: 225 Park Avenue South,New York, NY 10003. Tel: 1-212-224-3979Email: [email protected]

Private Asset Management is ageneral circulation biweekly. Nostatement in this issue is to be construedas a recommendation to buy or sellsecurities or to provide investment advice.

Private Asset Management ©2008Institutional Investor, Inc. ISSN# 726-98790

Copying prohibited without thepermission of the Publisher.

EDITORIAL TOM LAMONT

Editor

STEVE MURRAY Deputy Editor

WENDY CONNETT Executive Editor (212) 224-3979

MARIANNE NARDONE Managing Editor(212) 224-3610

KRISTEN OLIVERI Reporter

(212) 224-3934

MELISSA KARSHAssociate Reporter (212) 224-3255

STANLEY WILSON Washington Bureau Chief

(202) 393-0728

KIERON BLACK Sketch Artist

PRODUCTION DANY PEÑA

Director

LYNETTE STOCK, DEBORAH ZAKEN Managers

MELISSA ENSMINGER, JAMES BAMBARA, DOUGLAS LEE

Associates

JENNY LO Web Production & Design Director

ADVERTISING AND BUSINESS PUBLISHING

JONATHAN WRIGHTPublisher

(212) 224-3566

ERIK KOLBEditor, Business Publishing

(212) 224-3785

PAT BERTUCCI, MAGGIE DIAZ, LANCE KISLING, ADI HALLER

Associate Publishers

BRIAN GOLDMAN Advertising Production Manager

(212) 224-3216

LESLIE NGAdvertising Coordinator

(212) 224-3212

PAM120108 11/26/08 1:10 PM Page 2

Page 3: WELLS NAMES WACHOVIA EXEC TO TOP POST

December 1, 2008 www.iiwealthmanagement.com Private Asset Management

Silver Bridge Adds Development Head

Wealth advisory boutique Silver BridgeAdvisors has signed on Deirdre Prescott asdirector of client development. Prescott joinsfrom Lehman Brothers Private InvestmentManagement unit, where she was an advisorwith $300 million in assets undermanagement.

Prescott told PAM she was attracted toSilver Bridge because the firm is in growth mode and enhancingits technology capabilities. “It’s kind of interesting when you areat any of the wirehouse firms, you do get offers that will pay amultitude of revenues and I just wasn’t interested in making amove like that—and be tied to a firm for a period of five to sevenyears and selling my clients,” said Prescott, who was also attractedto the equity ownership at Silver Bridge.

Prescott’s hire is part of the Boston-based firm’s recruiting effortand plans to expand its reach on the East Coast (PAM, 10/3).

Dollars And CentsAffluent Concerned With Losing WealthNearly half of wealthy investors, those with $1 million or morein investable assets, are worried about losing money—the mostparanoid being the ultra-wealthy, according to a Dow JonesWebinar called Save Your Book of Business: What the WealthyReally Care About.

Robert Frank, wealth reporter for the Wall Street Journal, saidthe unprecedented amount of fear amongst the wealthy is theresult of the wealth management industry’s inevitablecontraction in the short term. “We are moving from an age ofconspicuous consumption to conscientious consumption—where the wealthy want products that are more quiet and subtleand the aim is more about meaningful things that would notrub wealth in the face of others,” he said, adding, “There is ashift from indulgence to health and wellness and more of a focusaway from [GM] Hummer type vehicles to the [Toyota] Priusand other more conscientious ways of traveling such as buyingcarbon offsets with private jets.” Frank said the wealthy are nowputting their money into cash, gold, land and champagneinvestments. Liquidity has become the new status symbol oftoday’s wealthy, he said.

Frank said there will be renewed growth in the wealthmanagement industry in about three to five years and that the

landscape may look different with an increased number ofsmaller boutique shops, multi-family offices and breakawaybrokers. “I believe that market share wise a lot of the wealth willstart to move to the smaller boutiques simply because of supplyand demand. Clients will be willing to trade in the stability [ofthe larger firms] for personalized service and subjectiveinformation,” he said.

Baird Grabs $600M From Merrill, UBSRobert W. Baird’s Private Wealth Management Group hasnabbed more than $600 million in assets under management intwo separate teams for its Scottsdale, Az. office. The LPBSGroup, made up of former Merrill Lynch financial advisorsMichael Lyons and Daniel Peter, Andrew Brinkman, MatthewSonder, Ted Sweeney, portfolio specialist, and assistants MaggieVoight and Meghan Cyr, joins with $425 million in AUM. In aseparate move, the Hawley/Chandler Group, which includesfinancial advisors Vince Hawley, James Chandler and Joe Christand client relationship associate Jacque Decker, joins from UBSwith $205 million in AUM.

The team additions coincide with the completion of anoffice expansion in Scottsdale. “In a market where firms arestruggling and losing brokers we are expanding, remodelingand adding,” said Mark Peterson, market manager forArizona. Peterson, told PAM that both Arizona offices doubledin size to accommodate the addition of 15 advisors in itsPhoenix and Scottsdale offices. “In Scottsdale we don’t havemuch room left as we do have a commitment for anotherindividual to start in early December, and another large teamfrom a major wirehouse looking to come in mid-January,” hesaid, declining to elaborate on the new additions.

Peterson said that many new recruits have been attracted tothe fact that the firm is privately and employee owned, whicheliminates the “headline risk.” Peterson declined to commenton specific compensation packages, but said in general the dealsat Baird are much less than those of some of the majorwirehouses. Within the last year, Baird launched its first WMoffice in northern California, has added veteran financialadvisor teams in Minnetonka, Minnesota, Reston, Virginia,and plans to expand to Nevada, greater Philadelphia, Baltimoreand other geographic areas (PAM, 7/24). Peterson said the firmwill grow its Tucson, Az. office next year, which currentlyemploys one financial advisor.

A UBS spokeswomen confirmed the departures. Calls toMerrill were not returned by press time.

To receive email alerts or online access, call 800-715-9195. 3

Firms & Services

Deirdre Prescott

PAM120108 11/26/08 1:10 PM Page 3

Page 4: WELLS NAMES WACHOVIA EXEC TO TOP POST

Private Asset Management www.iiwealthmanagement.com December 1, 2008

Colorado Firms PartnerThe G5 Financial Group, a Colorado-based advisory group,has joined forces with Denver-based Geneos WealthManagement. G5 Financial was part of the independentbrokerage division of American International Group. “G5wanted a firm that was smaller and had a different culturethan AIG,” said Ryan Diachok, v.p. of marketing andbusiness development for Geneos. “We are helping to reshapethe industry for elite independent financial advisors.” G5manages approximately $580 million for high-net-worthclient throughout Colorado.

Recently, Geneos has hired several advisors who are looking togo independent, and plans to continue expanding. Geneos has260 advisors throughout the U.S. and $7 billion in assets undermanagement, and G5 has 25 advisors.

Risk Management, Asset AllocationTop Priorities

Odyssey Financial Technologies, a globalprovider of private wealth products andservices, has released a white paper stating thatprivate banks and wealth management firmsneed to focus on asset allocation and managingrisk as top priorities. The firm rolled outConsequences of the 2008 Financial Crisis onPrivate Wealth Management to outline areas in

wealth management that are most affected by the market turmoil. Authored by Didier Pitton, Lausanne-based product

marketing director, the white paper says that firms most needto help clients understand risk after five years of relativelysmooth financial sailing. “In the last two months many clientshave lost money in some financial instruments, includingmoney market funds where they didn’t think so much risk wasat stake,” said Pitton. The paper discusses the importance oftransparency of structured products for clients, and providingtrue asset allocation and foreign investment diversification forU.S.-based clients. “There is not enough diversification intoemerging markets, European equities and fixed incomemarkets,” he said.

Pitton added that transparency is paramount for theindustry because traditionally, wealth advisors were beingcompensated by the amount of products they sold comparedto the quality of service they provided. “Relationships willmake a difference, and the concept of a trust advisor is moreimportant then ever,” said Pitton.

HSBC Sponsors Miami Design FairHSBC Private Bank, in conjunction with its role as principalsponsor of art convention Design Miami/, is showcasing thetalents of high school student designers at Miami-basedDesign and Architecture Senior High (DASH) onDecember 3-6. HSBC asked senior students from DASH todesign environmentally friendly dresses to be showcased atthe fair.

During the fair, HSBC PB lounge will host clients and gueststo display a new collaboration with Fernando and HumbertoCampana, winners of the Design Miami/ 2008 Designer of theYear Award. Throughout the fair, a documentary film HSBC PBproduced with (www.Dezeen.com) featuring the Campanabrothers will be playing. Marlon Young, ceo of PB Americas, saidthis is a great opportunity for HSBC to encourage youngdesigners and entrepreneurs to enhance their talents and networkwith industry veterans.

Design Miami/ is the largest forum for internationaldesign, bringing together leading designers, collectors, dealers,curators and critics from around the world. HSBC PrivateBank provides banking and trustee services with 90international locations.

Rivals Pick Top Merrill CropAlthough Bank of America managed to keep 6,200 of the6,600 top Merrill Lynch producers who were offered retentionpackages, according to published reports, more than 120 fledthe coop last week. Morgan Stanley, UBS and Smith Barneypicked up dozens of brokers who chose not to sign retentiondeals by the Nov. 14 deadline. A spokeswoman said that the10,000 brokers who were not offered retention pay are alsoexpected to join BofA. Recruiters argue that hundreds more areexpected to depart in the coming weeks as Merrill’s rivals aredishing out the cash for the thundering herd. A BofAspokesman did not return calls by press time.

Morgan picked up 15 Merrill Lynch brokers with over$921 million in assets under management and $14 million inproduction. One of the teams—Charles Bird, Tracy Bird andJohn Rocco —was at Merrill for a total of 25 years. The teamhas $2.6 million in production and $260 million in assetsunder management. Five brokers with $673 million in assetsunder management and $4.6 million in production went toUBS. Two teams with a combined production of over $2.5million and $193 million in assets under management movedto Smith Barney.

©Institutional Investor News 2008. Reproduction requires publisher’s prior permission.4

Firms & Services (cont’d)

Didier Pitton

PAM120108 11/26/08 1:10 PM Page 4

Page 5: WELLS NAMES WACHOVIA EXEC TO TOP POST

December 1, 2008 www.iiwealthmanagement.com Private Asset Management

“Morgan Stanley and UBS were offering the top packages onthe Street and they were able to get some of the top guys thatdidn’t like the package terms,” said George Jones, a New Yorkrecruiter. Smith Barney may be lagging behind because of thefirm’s financial turmoil and layoffs. A Smith Barney managersaid the firm is “trying to do more with less.” At press timeFriday Citi CEO Vikram Pandit said Smith Barney would notbe sold off.

Morgan Stanley has been offering $2.6 million to $1 millionproducers to jump ship. A spokeswoman for Morgan could notcomment on details of the package but said it will continue toremain competitive. A West Coast recruiter said that UBS willstop offering its generous recruitment package by next week. Thepackage had offered $2.4 million to $1 million producers, withhalf paid upfront. A UBS spokesman could not comment oncompensation matters. Smith Barney’s package is on par withUBS and Morgan.

Schiff Hardin To Host EstatePlanning TeleconferencePrivate client law firm Schiff Hardin will host a teleconferenceabout recent developments in estate planning, highlighting issuesincluding charitable giving, asset protection, insurance and estateadministration. The Manhattan-based firm’s Private Clients,Trusts & Estates Group will host the teleconference, ABA RecentDevelopments in Estate Planning, on December 4, to be run bypartner John Dadakis.

Partner Thomas Abendroth and Skip Fox, partner with lawfirm McGuire Woods, will also lead the teleconference, whichwill include a discussion on marital deduction and gifts. SchiffHardin has rolled out several seminars this year, the most recentdiscussing open architecture (PAM, 10/20).

Glenmede Taps Hedge Fund ExecPhiladelphia-based Glenmede Trust hastapped Benjamin Alimansky in the newly-created role of first v.p., managing its hedgefunds and investment strategies. Alimanskyjoins from Brooklyn NY Holdings where hewas a senior v.p. and portfolio manager.

Alimansky, who reports to GordonFowler, cio, was brought on to help with

the firm’s Manager Alliances Program which evaluatesexternally managed investment products for its high-net-worth clients, said a spokeswoman.

Glenmede has roughly $16 billion in assets under advisementwith additional offices in Princeton and Morristown, N.J.,

Wilmington, Del. and Beachwood, Ohio. Alimansky referredcalls to the spokeswoman.

Deutsche Bank, NY Mag Co-HostCharity GalaDeutsche Bank, together with New York Magazine, is hosting a10th anniversary party at Christie’s to benefit the Room ToGrow charitable organization.

The evening gala reception, slated for December 2, willinvite roughly 400 clients and friends of the sponsor firmsincluding board of directors members Princess Alexandra ofGreece, David Heleniak, vice chairman of Morgan Stanley,and Rachel Mauro, founder of Rachel Mauro Fine Arts inManhattan. The event will kick off with a cocktail reception,dinner, and a silent and live auction, with proceeds benefitingManhattan-based Room to Grow, which works with babiesand their caregivers born into poverty, said executive directorLexy Mayers. The organization provides one-on-one parentalsupport, essential items and toys, and healthcare during achild’s first three years of development.

Uma Thurman, chair of the Gala, will also address attendees.Costs of the event could not be determined.

United Capital Hosts BusinessOwner Webinar

Wealth management firm United CapitalFinancial Partners hosted a Webinar sessionon Nov. 21 on maximizing the value of abusiness, designed for wealth managementfirms and family business owners.

Newport Beach-based United Capital,run by ceo Joe Duran, has grown throughacquisition of smaller U.S. wealth

management firms—after Duran predicted last year that firmswould look for more merger opportunities because of adownturn in the financial markets (PAM, 12/3). The Webinar,called “How To Maximize The Value of Your Practice,”discussed the steps to take to increase business value, and howto take advantage of current markets and industry changes toadd value. The Webinar will also break down successionplanning steps and how to prepare for changes to ownership.

“Whether you plan on selling now, five years from now ornever, you will leave with information you can use to increaseyour practice’s value immediately,” Duran said, adding that theseminar should be valuable regardless of whether the firm plansto liquidate. United Capital’s footprint markets include Florida,Texas and Connecticut.

To receive email alerts or online access, call 800-715-9195. 5

Benjamin Alimansky

Joe Duran

PAM120108 11/26/08 1:10 PM Page 5

Page 6: WELLS NAMES WACHOVIA EXEC TO TOP POST

2009 Advisory Board & Speaking Faculty Includes:

Laura Berry, INTERFAITH CENTER ON CORPORATE RESPONSIBILITY (ICCR)Marc Fox, GOLDMAN SACHSKeith L. Johnson, FORMERLY STATE OF WISCONSIN INVESTMENT BOARD; REINHART INSTITUTIONAL INVESTOR SERVICES; NETWORK FOR SUSTAINABLE FINANCIAL MARKETSMichael Lent, EDWARD W. HAZEN FOUNDATIONJack McGourty, COLUMBIA UNIVERSITYDrummond Pike, TIDES FOUNDATIONLuther M. Ragin, F.B. HERON FOUNDATION Howard Rifkin, STATE OF CONNECTICUT D’Artagnan Scorza, UNIVERSITY OF CALIFORNIAMorgan Simon, RESPONSIBLE ENDOWMENTS COALITIONDr. Jeffrey L. Sturchio, MERCK & CO., INC.Toni Symonds, CALIFORNIA STATE CAPITOL; FORMER STATE CONTROLLER REPRESENTATIVE TO THE CALPERS AND CALSTRS BOARDSStephen Viederman, CHRISTOPHER REYNOLDS FOUNDATION; THE NEEDMOR FUND ...AND MORE!

KEYNOTE ADDRESSThe Role of Corporations in International Human Rights

Special Representative of ; Pro-

fessor, Harvard Kennedy School of Government;

Other Featured Speakers Include:

PLUS! New Workshop:

A Practical Guide to the UN Principles for Responsible Investment (PRI)

To Register 1.800.437.9997 or [email protected] www.iievents.com/RI

LOS ANGELES FIRE AND POLICE PEN-SIONS (LAFPP)

NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM (NYCERS)

TIAA-CREF THE NATHAN CUMMINGS FOUNDATION

Social Investment Forum members are entitled to a special discount! Call 1.800.437.9997 for approval today.

A UNIFI Company taking the environment into account

Project1 10/21/08 9:48 AM Page 1

Page 7: WELLS NAMES WACHOVIA EXEC TO TOP POST

Management is based on telephone interviews with about 503affluent households, with a net worth of $500,000 or more,between June and July, 2008.

Wealth Managers To Obama: RestoreInvestor Confidence

Wealth managers say the Obamaadministration’s primary task with regard totheir client’s finances is to restore investorconfidence, according to a SEI PrivateBanks poll taken the day after the election.SEI polled about 22 wealth managers frombank and trust institutions who attended itsPrivate Banking Asset Management

Symposium in Denver. Roughly 88% of those polled choserestoring investor confidence as the new administration’s firsttask, said Jim Morris, senior v.p. private banking.

Morris told PAM that SEI looked particularly at tax policy.Of those polled, 100% said that with President-elect BarackObama ready to raise capital gains tax, they would adviseclients to consider tax-managed strategies, with 44% sayingthey have already incorporated those strategies for clients andthe remaining 56% saying they plan to do so.

Of those polled, 50% expect their clients to benegatively impacted by Obama’s policies, 38% were unsurewhether his policies would have a positive or negativeimpact and 12% said they expected a positive impact. “Thedominant message of this is for wealth managers andwealthy clients to take a look at three things—are yourinvestment strategies aligned with your goals, do you havethe right level of diversification and professional managementand are you taking advantage of tax-managed strategies inyour portfolio,” said Morris.

Affluent Disapprove Of WealthManagement Term

Nearly half of affluent households do not feelcomfortable with the term “wealthmanagement,” according to a study bySpectrem Group. Affluent householdsare defined as having a net worth of $500,000or more, but as the level of wealth increasesthe term “wealth management” is typicallyemployed.

Tom Wynn, director of the Spectrem Group, told PAMthat some people feel the term “wealth management” is tooelitist. Of those surveyed 41% said they strongly disagreed ordisagreed that the term “wealth management” appeals tothem; 26% were neutral; and 34% agreed or strongly agreedthat the term did appeal to them. Of those surveyed with anet worth less than $1 million, 26% strongly agree or agreethat the term is appealing to them; 32% are neutral; and 42%disagree or strongly disagree that the term “wealthmanagement” is appealing.

Wynn said he was surprisedto find that some surveyedwere not aware that theirprimary provider offinancial services offereda wealth managementprogram. Of thosesurveyed, 63% saidthey knew that theirprimary provider offers awealth management programand only 43% are currently involvedin such a program. The Affluent and Their Perception of Wealth

December 1, 2008 www.iiwealthmanagement.com Private Asset Management

Jim Morris

Tom Wynn

Research

Paid subscribers now have access to a PDF of theupcoming Monday’s newsletter

on PAM’s Web site every Friday afternoon before 5 p.m. EST. That’sa 64 hour jump on mail delivery, even when the post office is ontime! Read the news online at your desk or print out a copy to readat your leisure over the weekend. Either way, you’ll be getting ourbreaking news even sooner and starting your week off fullyinformed!

GET IT FRIDAY!

PAM120108 11/26/08 2:06 PM Page 7

Page 8: WELLS NAMES WACHOVIA EXEC TO TOP POST

Private Asset Management www.iiwealthmanagement.com December 1, 2008

Family OfficeGoing To The Dogs…Highmount Throws Philanthropic Event Multi-family officeHighmount Capitalheld a “Day ofPhilanthropy” toencourage charitablegiving among children ofits clients. The event,launched in response torequests from clients,was held at the ASPCAin Manhattan.

The event, held Nov. 5, invited 15 adults and theirchildren, ages six to 12, to look at ways to find their serviceinterests, even at a young age, as well as how to researchcharitable organizations and identify various ways to startgiving, said Darcy Bhatia, partner at Highmount. Costs couldnot be determined.

Ashbridge Hires Wachovia ExecAshbridge Investment Management, a multi-family officebased in Philadelphia, has hired Bill Knott in a newly-created role of chief relationship officer. Knott was tappedfrom Wachovia where he was regional president forWachovia Bank’s greater Philadelphia and Delaware Region.The hires mark a move by the MFO, originally founded bythe Grace family, which made its fortune in Bethlehem

Steel, to become more aggressive in courting new businessand retaining top clients.

Charles Grace, ceo, told PAM that Knott is now dealing withthe firm’s five top clients as well as supervising the other clientadvisors on staff and overseeing business development. “Bill nowhas the most important job in the firm,” said Grace, noting thatthe firm was looking for a major industry player with enoughstature to deal with ultra-high-net-worth clients. Knott has alsobeen appointed to the executive committee comprised of Grace,David Donabedian, cio, and Charles Grace III, managingdirector. Knott confirmed his appointment.

The MFO, founded over 40 years ago, caters to familieswith more than $20 million in assets under management.Gary Teigman and David Glaser at ECG Resourcesconducted the search.

Knightsbridge Preps Annual Holiday Bash

Knightsbridge Advisors will host its fourth annual holidayparty Dec. 11th in Midtown Manhattan. The search firm willinvite roughly 200 clients, intermediaries and friends of thefirm for cocktails and a three-course dinner at Frenchrestaurant Madison Bistro.

Allan Starkie and Steve Wade, partners of the firm which alsofocuses on mergers and acquisitions consulting, will host theevent which will include live entertainment and bag pipes. Costscould not be determined.

The wealth management industry’s soft marketingand client retention activities.

Wining & Dining

Highmount Capital Event

iisearches posted over $3.5 trillionin new search leads in 2007...

...grow your business withthe latest daily search leads.

For further information on iisearches’ daily search leads and searchable database of search-and-hire activity since 1995, visitwww.iisearches.com or contact Keith Arends in New York at 212-224-3533 or at [email protected], or

Ben Grandy (Europe and rest of the world) Tel: +44 (0)20-7779-8965 or at [email protected]

The world's number one sales and marketing tool for investment managers

PAM120108 11/26/08 1:10 PM Page 8

Page 9: WELLS NAMES WACHOVIA EXEC TO TOP POST

December 1, 2008 www.iiwealthmanagement.com Private Asset Management

To receive email alerts or online access, call 800-715-9195. 9

In today’s changing wealth managementbusiness, the client is relying on therelationship manager more so than ever tohave a clear understanding of theirobjectives, and the technical expertise todrive their strategies. Since they are crucial tothe success of the firm, the competition fortalented relationship managers is the most

intense among trust banks, private banks, brokerage firms,registered investment advisors, family offices, and multi-familyoffices. The relationship manager’s value is further enhancedbecause the clients’ discontent levels increase when their advisorleaves the firm—a frequent occurrence in the last two monthsas more advisors head for independent firms or boutique shops.

In 30 years of recruiting wealth management professionals, Ihave asked one question thousands of times when an executivewants to switch firms: “What is your motivation for consideringa move?” The answers allow me to understand the candidates’perceptions, values, and sincerity. Here’s what I’ve learned:

The best relationship managers are devoted to their clients.They experience anxiety when they perceive that corporatedecisions are in direct conflict with the best interests of theirclients. An example is putting sales quotas on specific products,which present a direct conflict. The problem is, “if I’m notpushing a product, my own annual review and bonus will suffer”while the other side of the concern is, “I might lose my client.”

These are tough choices. If they give in to the pressure of theorganization, the relationship manager often feels a loss ofprofessional integrity.

Compensation must be fair and competitive. It’s worthnoting that few relationship managers made compensation theirprimary motivation for changing firms. $10,000, $20,000, oreven $50,000 is not enough of an incentive to recruit anindividual to an organization that doesn’t truly understand anddeliver a value-added proposition around wealth management.Conversely there is often a willingness to consider the potentialof an increase in compensation, yet not an increase on the spot,when moving to an organization with the right philosophy.

When profit margin supersedes providing quality clientservice, the result is inadequate technology and insufficient andpoor quality support. This translates into late nights and someweekends for those relationship managers who care.

Workloads are often excessive. Many relationship managers

feel guilty about not being able to service their clients properly.The relationship manager is leveraged to a breaking point.

Culture clashes are caused by merging companies withdifferent philosophies and business models. Relationshipmanagers struggle with these differences. This was obvious withrecent mergers in the space that forced relationship managersfrom a customized wealth management approach to a one-size-fits-all model.

Relationship Manager WoesSome relationship managers find their focus is overly internal,rather than with the client or prospects. They are bogged downwith an overbearing process, excessive internal meetings, and theinability to gain access to specialists. Often, decision-making is toobureaucratic, at the expense of competitiveness and client service.

When the wealth management organization is a part of alarger financial institution, resources for the wealthmanagement group are often limited. Bonuses may benonexistent if the larger parent experiences a financial mishap.

Relationship managers want to be appreciated as well asrecognized. Relationship managers thrive when given theopportunity to participate in corporate decisions. Corporationsthrive when they exploit the relationship manager’s understandingof the client to create policies, products and services.

All of the major service providers have experienced decreasesin revenue, but some wealth management boutiques have hadsubstantial gains in new business revenues and are seekingseasoned relationship management talent.

National registered investment advisory firms are startingnew companies and providing entrepreneurial relationshipmanagers with the opportunity to start their own firms withsignificant ownership. This can be very attractive since theparent company can provide cutting edge products and thecentralized support and services of a national platform.

Using the flourishing single-purpose wealth managementboutiques as the inspiration, I believe we will see a new breed ofindependent wealth managers that will be small,entrepreneurial, more client focused, more personalized, andwith less interest-clash and bureaucracy.

Anthony Riotto is the Founding Partner of New York-basedRiotto-Jones, a national wealth management consulting andsearch firm launched in 1982.

G U E S T C O L U M N

The Changing Face Of Today’s Wealth Management BusinessBy Anthony Riotto

Anthony Riotto

PAM120108 11/26/08 1:10 PM Page 9

Page 10: WELLS NAMES WACHOVIA EXEC TO TOP POST

Private Asset Management www.iiwealthmanagement.com December 1, 2008

• Boston-based wealth management boutique CrestwoodAdvisors has promoted Leah Cadillac to partner. She now isresponsible for relationship management, operationsmanagement and financial planning.

• Lehman Brothers lost Steven Mitchell to UBS Private WealthManagement in New York. Mitchell joins with north of $250million in assets under management.

• J.P. Morgan’s Private Wealth Management division tappedAndrew Barnes as an investment advisor in the New York office.Barnes is responsible for working with high-net-worth individualsand families on investment strategies based on risk tolerance andlong and short term financial goals. He joins from BernsteinGlobal Wealth Management where he held a similar role.

• Smith Barney has hired Joe Phillips from Morgan Stanley inBoston. Phillips joins with $109 million in AUM. Smith Barneyhas also brought on Joseph Ricotta from JP Morgan for its 153East 53rd Street office in New York, joining with $125 million inAUM. Smith Barney has tapped the team of Shannon and LisaGlor from Merrill Lynch in Tampa. The Glor’s join with

$105 million in AUM. Smith Barney also hired the Rahm Groupfrom Morgan Stanley for its Madison, Wis. office, whichincludes Stig Rahm and Patrick Rindfleisch who join with$140 million in AUM. Lastly, Smith Barney has nabbed theteam of Tim Foster and Preston Rigsby from Morgan Stanleyfor its Lubbock, Tx. office, joining with $116 million in AUM.

• Merrill Lynch has hired brothers Michael and Benny Varzifrom Morgan Stanley for its Atlanta, Ga. office. The Varzi’s joinwith about $400 million in AUM.

• Barclays Wealth Management has hired Zamir Siddiqi as anadvisor in its Los Angeles office. Siddiqi joins from BernsteinGlobal Wealth Management where he was a principal and advisor.

• Deutsche Bank has nabbed Pierre Economacos, advisor andmanaging director, and partner John DeLappe from UBS inMiami. The pair joins with about $500 million in AUM.

• Baird has launched its first Wealth Management office inCalifornia and hired four to staff the hub. Carlos Alcaine, JosephHoon, Seth Kaplan and Stephen Halterbeck have been broughton as advisors in the Roseville, Calif. hub. Alcaine, Halterbeck

On The Move

Get instant, online access to Private Asset Management for everyone in your fi rm.

This Corporate Access Program (CAP) is being offered now for ONE PRICE — Call now to get your discount and start your fi rm’s subscription to www.iiwealthmanagement.com.

Your CAP Subscription Includes:> Bi-weekly email updates available exclusively to subscribers> Breaking news sent to each designated person at your fi rm> A cost-effective way to disseminate information > Protection against copyright violations — your fi rm is protected> Mobile-friendly website coming soon> Blackberry-friendly email delivery coming soon

Corporate Access Program

Private Asset Management – Critical Intelligence for the High Net-Worth Arena

FOR MORE INFORMATION PLEASE CONTACT:Dan Lalor | 212.224.3045 | [email protected]

PAM120108 11/26/08 1:10 PM Page 10

Page 11: WELLS NAMES WACHOVIA EXEC TO TOP POST

December 1, 2008 www.iiwealthmanagement.com Private Asset Management

To receive email alerts or online access, call 800-715-9195. 11

be more announcements regarding upper management changes.Carroll is head of Wachovia’s Capital Management Group.

Jay Welker, executive v.p. based in San Francisco, currentlyruns Wells Fargo Wealth Management Group which includesPrivate Client Services and the Private Bank. Calls to Welkerwere not returned.

Prior to the merger, Wells Fargo named John Duchala as headof the Northeast region and has made a push there, marking itsfirst Northeast presence (PAM, 9/22). Wachovia WealthManagement brought on John Dowd, formerly head of wealthmanagement in New York, and Thomas Scaturro, the former headof sales for the tri-state area with BNY Mellon WealthManagement, to beef up the firm’s New York presence (PAM,

WELLS NAMES(continued from page 1)

and Kaplan all join from Wachovia Securities, where they wereadvisors and Hoon hails from Bank of America. The Milwaukee-based firm plans to open more offices in Northern California nextyear, and the team reports to branch manager Andy Fass.

• Raymond James & Associates has hired Gerry Saelzer andJeff Atlas from Wachovia/A.G. Edwards for its Stuart, Fla.office. Saelzer and Atlas join with $300 million in AUM.Raymond James has tapped Steve Crabtree from UBS for itFranklin, Tenn. office. Crabtree joins with $180 million inAUM. Raymond James also nabbed the team of Nadine Wilkesand Paul Weinstein from UBS for its Fort Myers, Fla. office,who join with $400 million in AUM. The firm has brought onthe team of Barry and Ty Bernicke from SII Investments for itsEau Claire, Wis. office, who steps in with $219 million inAUM, and tapped Charles Nemes and Timothy Rush from

Merrill Lynch for its Novi, Mich. office. The team joins with$520 million in AUM.

• EFG International has launched a Los Angeles office and hiredAmira Matar as senior director of wealth management. Matar joinsfrom Bank of America in Los Angeles, and brings her backgroundin working with prominent clients particularly in the Lebanesecommunity to the new post. She will work to grow business in thisniche as well as within the Middle East community, and is active inLebanese-American philanthropic organizations.

• RBC Wealth Management has appointed Brenda Vice as headof Wealth Management Strategy. Doug Coulter, president andceo of RBC Direct Investing, will take over Vice’s currentposition as president of RBC Asset Management. The newappointments will go into effect on February 1, 2009.

On The Move (cont’d)

Lynch, who both reported to Sevilla-Sacasa, have also been let goas part of the restructuring. The trio’s roles have been taken overby Keith Banks, ceo and president of BofA’s Global Wealth &Investment Management unit. According to an internal memo,Banks is “streamlining certain U.S. Trust division areas toposition for greater growth.” The restructuring is also a way tocut legacy UST posts ahead of BofA’s pending merger withMerrill Lynch, said people familiar with the firm.

Evercore, which launched last week as a division of EvercorePartners, snatched seven other staffers, including Karen Francois,head of the New York City trust team. These moves are unrelated tothe restructuring, according to executives familiar with the group.

Jeff Maurer, former chairman and ceo of Lehman BrothersTrust Company who left in 2007, will run Evercore WM.Maurer also has a history with UST, where he was vice chairmanand cio before taking the post at Lehman.

Zander did not return calls and Sevilla-Sacasa had left the firmand could not be reached. Belinda Sneddon, an executive withinUST’s MFO division, has been named interim head followingZander’s departure, according to a BofA spokesman. He declined toelaborate on additional replacement plans. —M.N. & K.O.

SEVILLA-SACASA(continued from page 1)

terms of people or assets under management growth. The bank,which views wealth management as a strong spot despite thecurrent market downturn, hopes to capitalize on the currentmarket volatility that has left many bankers unhappy with theircurrent institutions.

Young also said he believes many private banks and wealthmanagement firms will be reevaluating in-house services likephilanthropy because of the slowdown in this area, which hadbeen on a roll in recent years. HSBC’s philanthropic services arehandled mainly out of its Multi-Family Office group, whichincludes advisors with a specialty in philanthropy but who arenot focused solely on it. —K.O.

HSBC PLOTS(continued from page 1)

6/2). Executives familiar with both firms are saying there is no wayboth management teams will be kept on following the merger, andmost believe the Dowd/Scaturro Wachovia team will survive.

Calls to Duchala, Dowd and Scaturro were also not returned.Calls to Carroll were referred to a spokeswoman who would onlyconfirm his appointment. —Kristen Oliveri

PAM120108 11/26/08 1:10 PM Page 11

Page 12: WELLS NAMES WACHOVIA EXEC TO TOP POST

Private Asset Management www.iiwealthmanagement.com December 1, 2008

©Institutional Investor News 2008. Reproduction requires publisher’s prior permission.12

CorrectionPatricia Angus, head of Angus Advisory Group, works withfamilies with $50 million and above. Angus is a strategic advisorto Shelterwood Financial Services, but does not share clientsand is an independent advisory. A story in PAM’s 11/17 issueincorrectly stated this relationship.

Heidi Weighs In On Mistress DownsizingMy iPhone has been buzzing with calls from myphilandering friends after many of their ultra-wealthymen-on-the-side have called it quits or cut off theirunlimited spending just before the holiday season.Heidi was able to back up this trend, which is hittingManhattan and beyond, after reading the latest surveyby Connecticut-based Prince & Associates.

The salty survey says that more than 80% of multi-millionaires who have extra-marital lovers plan to cutback on their gifts and allowances to their female gal pals.

The good news, I guess, is that the study says thatonly 12% of the multi-tasking multimillionaires planto let their part-time lovers go altogether.

So some might’ve escaped the chopping block fornow—but perhaps should be setting up more lucrativearrangements on the side. “Rich people are getting hit,and they’re all expressing the need to curtail unnecessaryspending. Lovers are part of the same calculation,” saidRuss Prince, president of Prince & Associates. Heidinever has to worry about such low-brow things as sheonly dates billionaire bachelors who vow never tomarry. As for the methodology, the study was quick tonote it screened out the one-night-stands and focusedsolely on wealthy men with a net worth of $20 million,who said they had lovers of at least a year or more.

H E I D I N E D W U R T H ’ SN O T E S

Quote Of The Week“It’s kind of interesting when you are at any of the wirehouse firms,you do get offers that will pay a multitude of revenues and I justwasn’t interested in making a move like that—and be tied to a firmfor a period of five to seven years and selling my clients.”—DeirdrePrescott, director of client development with boutique advisory SilverBridge Advisors, discussing her reasons for joining the Boston-basedshop from Lehman Brothers (see story, page 3).

One Year Ago In Private Asset Management• Neuberger Berman launched a re-branding initiative of itsPrivate Asset Management Advisory Services division, renamingit Neuberger Berman Wealth Management. Alison Deans wasbrought on internally to run the division. [Deans was tapped toreplace Jack Rivkin, cio and head of Neuberger Berman PrivateAsset Management, who stepped down (PAM, 6/16).]

• Credit Suisse launched its first private banking presence inIndia. Puneet Matta was hired from Citigroup, where he wascountry business manager, to run the new operation.

Five Years Ago• Bryn Mawr Trust launched its first national brand campaignin an effort to make the large regional trust company ahousehold name in wealth management. [Bryn Mawr has sincelaunched the Bryn Mawr Trust Company of Delaware, alimited purpose trust company in Wilmington, Del., to expandthe firm’s footprint nationally and internationally (PAM, 11/13).]

• UBS Financial Services had plans to roll out a private bankingeffort in the U.S. to target family offices with credit services andEuropean investment management.

Scaturro joined Goldman last year from U.S. Trust, where hewas ceo (PAM, 7/16/07). Prior to that he was a senior wealthofficial at Citigroup. A Goldman spokeswoman declined tocomment on possible replacement plans.

—Marianne Nardone

SCATURRO TO(continued from page 1)

As a Private Asset Management subscriber, you’re entitled to accessPrivate Asset Management online at www.iiwealthmanagement.com. Goto www.iiwealthmanagement.com and get the following added BENEFITS:

• Breaking News E-mail Alerts—get critical industry news as itbreaks

• Live Web Updates—new stories posted in real time throughoutthe week.

• Earlier Delivery—each issue of Private Asset Management isavailable in full on the website the Friday before it comes out by 5pmEST.

• Remote Access—get industry news no matter where you are bysimply acessing www.iiwealthmanagement.com.

DO NOT MISS OUT!Set up your subscriber password today Simply contact us at

[email protected] or call us at 1-800-715-9195.

For More Benefits Visit Our Web Site

PAM120108 11/26/08 1:10 PM Page 12