Fund managers lose out in cost-cutting frenzy
The investment divisions of Citigroup, Deutsche Bank, Baring Asset Management and Threadneedle have each seen departures.
Two senior client relations directors at Barclays Global Investors (BGI) have departed as part of a cost-cutting process at the firm. Gartmore and Amvescap cut jobs last month.
The most senior departure last week was New York-based Rama Krishna, institutional investment chief at Citigroup Asset Management. He decided to leave after Mike Even was promoted to the position of global investment chief, and took over Krishna's responsibilities.
Adam Seitchik, chief global strategist at Deutsche Asset Management in London, has returned to the US for personal reasons after masterminding the creation of two asset allocation funds.
Johanna Kyrklund has been promoted to take his place temporarily. Analysts believe the final replacement for Seitchik will be an internal appointment.
Peter Wolton is set to step down as chief executive of Baring Asset Management's investment division after one year in the job. His role will be absorbed by group chief David Brennan.
Threadneedle Investments recently made Colin Robertson, its head strategist, redundant. His role will be absorbed by other members of Threadneedle's fund management team.
BGI has seen the departure of two client directors, Lee Ann Thompson and John Belgrove, who has found a job at Hewitt Bacon & Woodrow.
Headhunters say other departures from BGI are likely as the firm seeks to maximise its profits. Consultants say the departure of Thompson and Belgrove, in the wake of the retirement of James Woodlock, could weaken BGI's client relations effort. But BGI believes it can maintain its level of service.
Gartmore, the fund manager owned by US financial group Nationwide, plans to make 30 staff redundant by the end of the year. The cuts, around 4% of all staff, will mostly affect areas where Gartmore is not winning business.
Amvescap, the Anglo-US fund manager, has made swingeing reductions after a wholesale reorganisation of its business. One casualty was Sarah Bates, head of UK institutional business at Invesco.
A UK relocation from London to Henley-on-Thames saw Invesco lose 18 investment staff, of which 11 were fund managers.
Concern is growing that the firms' cutbacks will lead to the exit of talented managers worried about the loss of support for their efforts and cuts in future bonus levels. More often than not, individuals who leave investment firms have not been replaced.
A large number of managers are seeking to join new firms, or become involved in start-ups, typified by Sandy Nairn, former Scottish Widows investment chief, who is setting up a new firm with several former colleagues.
The latest cutbacks have been discussed by senior management of the firms concerned for weeks.
The departures have come at a time when a recovery in equities has led to growing optimism within the industry. Star manager Anthony Bolton of Fidelity said last week a new bull market in equities has begun. Hopes that recovery and cost cuts will lead to renewed prosperity led to gains of around 15% in quoted fund manager share prices last week.
Several private equity and fund management firms are showing growing interest in acquiring teams of fund managers who want to become involved with new operations.
