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Wealth Manager: Rathbone's Edinburgh duo on building stability in an over-broked battleground
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by Danielle Levy on Oct 10, 2013 at 00:01
‘You can either take two routes: you either highly commoditise your client base and you push them into model portfolios or you take a more bespoke approach, which is something Rathbones has hung its hat on for a long time,’ Dewar explains.
Rathbones’ Edinburgh office, led by David Macauley, manages around £2 billion of Rathbone Investment Management’s total £18.8 billion under management. This is a significant rise since 2000 when the office was formed and it had £200 million under management and just 20 staff. The hub now boasts a 40-strong team.
‘We have had tremendous growth as an office over the last 10 to 13 years. Revenue-wise we make up around 10% of group revenue at just over £14 million,’ Dewar says.
This compares favourably to the £9 million it made in revenue before Rathbones acquired Bank of Scotland’s portfolio management service division from Lloyds in 2009.
What is striking about the Edinburgh office is the strides the team has made with the local adviser community over the past decade, carving out a presence in the self-invested pension plan (Sipp) market.
At a company level, Sipps and pensions now account for 11% or rather £2 billion of Rathbones’s total assets, and Edinburgh has proved a real force behind this growth.
A sub-team within the Edinburgh office, which is led by director John Gunn and to which Dewar belongs, has led the charge on this. Around 75% of the £475 million the team currently runs is in Sipps.
Gunn says this started 10 to 11 years ago when discretionary fund management was first brought to the masses by life companies.
He expands: ‘We happened to be there at the right time and in the right place and got onto their panels. In the early years it was a tough sell – there was lots of kissing frogs and not a lot of rewards for your efforts, and then gradually advisers switched on to this, after forming relationships with a number of platforms, which helped them to develop expertise in the Sipp market firmwide and in the industry.’
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