Industry news

Evelyn Partners sizes up Scotland expansion with new office

21 September | Wealth

Wealth management services group Evelyn Partners has agreed terms for offices in Glasgow, Scotland.

This announcement brings the Evelyn Glasgow teams together in a single location that will support its growth plans in Scotland. The merged group, from Tilney and Smith & Williamson, has deep roots in Glasgow from 1881.

Evelyn, which looks after £52.7bn of assets for its wealth management clients and £10bn for its fund governance and administration clients, will make this its second biggest office in the group. Around 250 staff will move into the new place, which allows for future expansion, from two existing offices.

21 September | Management

Aubrey Capital Management extends fund to Italy

Edinburgh-based investment management fund Aubrey Capital Management has announced that its European Conviction Fund is now available for investors in Italy.

The fund, managed by Aubrey founder and director Sharon Bentley-Hamlyn, invests in securities listed on Western or Emerging European exchanges. This is a high conviction strategy to achieve long-term capital growth with a focus on cash generative growth stocks.

Furthermore, its objective is to generate significant long-term returns by investing in European companies that create a positive impact.

20 September | Economy

HSBC Asset Management rolls out new fund focused on circular economy

HSBC Asset Management has introduced a circular economy-focused fund that aligns with the UN sustainable development goals.

Called HGIF Global Equity Circular Economy, the fund complies with Article 9 of Europe’s Sustainable Finance Disclosure Regulation (SFDR).

It will invest in around 60 firms that are facilitating transition to a circular economy across the globe.

Firms working in various sectors including recycling, restoring natural systems as well as designing out waste and pollution will also receive investment.

HSBC Asset Management noted that it will not follow fixed allocations norms as well as region, sub-sectors or stages of the company while distributing the fund.

In addition, the new fund will invest in both wholesale and institutional investors. High-net-worth individuals, family offices and private banks will also be targeted.

It will be jointly managed by the firm’s portfolio manager and head of climate equity Benedicte Mougeot and co-portfolio manager Francois Travaille.

20 September | Investment

Investment technology firm Jacobi garners $10m funding

Jacobi, a US-based investment technology company, has secured an investment of $10m in its Series A funding round.

The round was led by Queensland Investment Corporation (QIC), which joins Jacobi’s current investors including Silicon Valley venture capital firms, Illuminate Venture Partners, 8VC and Western Technology Investment (WTI).

Following the fundraising, Crystal Russell from QIC and Bill Miller of Makena Capital will join the Jacobi board.

20 September | Credit

Credit Suisse reaches settlement over Archegos risk exposure case

Credit Suisse Group has agreed to a $32.5m preliminary settlement to end a lawsuit that accused the bank of deceiving shareholders over risky investments in collapsed firms like Archegos Capital Management and Greensill Capital, reported Reuters.

The settlement of the planned class action lawsuit was filed with the US District Court in Manhattan and is subject to approval from a judge.

The lawsuit accused the Swiss bank of getting involved in a high-finance game of Russian roulette through hedge funds and other major clients.

Although the bank has promised to manage its risk limits as well as risk error and credit exposure, it allowed its clients to make precarious, multi-billion-dollar bets with its credit, alleged the lawsuit.

It was also alleged that the laissez-faire practice followed by Credit Suisse has resulted in a loss of at least $5.5bn, which comprises figures from the collapses of Archegos and Greensill Capital.

Credit Suisse dismissed the allegation but agreed to settle the case.

The collapse of Archegos caused nearly $10bn of losses at banks and eliminated over $100bn of shareholder value.

The newly agreed settlement covers investors who bought Credit Suisse ADR between 29 October 2020 and 31 March 2021.

15 September | Wealth

Stanhope Capital expands in Switzerland

Wealth management firm Stanhope Capital Group has made further moves into Switzerland.

The group has hired Laurent Mazens as CEO of Stanhope Capital (Switzerland) SA, managing the side along with Karim Bertoni, managing director and CIO. As a pair, they aim to lead the group’s expansion in Switzerland, where Stanhope has operated for 15 years.

Mazens was formerly CEO of an independent wealth manager in Geneva. Previously, he held senior roles at Société Générale Private Bank, UBS, and Credit Suisse.

19 September | Deals

Jupiter Asset Management’s new CEO seeks to overhaul troubled business

Jupiter Asset Management’s newly named CEO is looking to undertake a restructuring to help the struggling firm bounce back from its ongoing slump, reported the Financial Times.

The overhaul of the business is aimed at slashing costs and achieve business growth after years of investor outflows.

In an internal memo, Matthew Beesley, who will assume his new role as CEO next month, noted that the firm had carried out a comprehensive review of its operational aspect.

19 September | Strategy

Credit Suisse looking to revive First Boston brand to bolster investment banking arm

Credit Suisse Group is mulling an idea to bring back the First Boston brand in order to strengthen its troubled investment banking business, reported Bloomberg.

Executives at the Swiss lender have proposed the idea to reintroduce the investment banking brand, which ceased to operate nearly 17 years ago, unnamed sources told the news agency.

As part of the plan, Credit Suisse is looking to change the name of its US investment banking business.

The plan, if moves forward, could pave way for Credit Suisse to either spin off or isolate its investment banking arm in the end.

However, the bank has no immediate scheme to spin off that division, the sources added.

16 September | Deals

Japan to probe sale of structured bond by global investment banks

Japan’s Financial Services Agency (FSA) is set to launch an investigation into the sale of structured bonds by foreign investment banks in the country, Bloomberg reported citing unnamed sources.

As part of the investigation, the financial watchdog will try to find out if the key issuers of structured bonds provide adequate data to local financial companies before selling their products.

The regulator will also examine the fees charged by the banks, people privy to the development told the news agency.

16 September | Strategy

UK mulling to lift cap on banker bonuses to lure top talent

British finance minister Kwasi Kwarteng could remove the cap on bankers’ bonuses that was introduced after the 2008 financial crash, reported the Financial Times.

However, no final decision has been taken yet on the matter, unnamed sources privy to the discussions told the publication.

The move is part of the new government’s major post-Brexit reforms and London foremost investment hub for global banks and top banking talent.

According to the source, a statement could be made as early as next week.

The existing cap, adopted by all the EU members, restricts the bonuses at two times an employee’s annual salary.

It remained in force in the UK despite it leaving the EU in 2020.

Industry players in London have been complaining about the cap as it encourages higher base pay that increases banks’ fixed costs.

People who oppose the lifting of the cap say that unrestricted bonuses could lead to the unnecessary risk that was created in the financial slump of 2008.