Rothschild pulls out of retail fund management after just three years
In one of the most remarkable U-turns the financial world has seen for many years, the highly secretive Rothschild Group is, in effect, pulling out of retail fund management and concentrating instead on the higher-margin areas of private banking and wealth management.
The group set up Rothschild Asset Management only three years ago and, less than a year ago, it launched the first nationwide advertising campaign in its 200-year history to publicise RAM's Five Arrows brand, complete with a lavish party at the exclusive Axis restaurant in London followed by a dinner at the Hilton hotel in Park Lane. "That's life," said a source close to RAM. "It's been a lot of fun, but the fact is that the asset management business has fallen away since last year and shows no sign of recovering."
RAM currently manages around £13bn of retail and institutional funds, principally in London, but also operates from a number of other offices in Guernsey, the Isle of Man, Singapore and Japan.
An official statement said yesterday: "We are examining various options for the future of the retail and institutional asset management businesses of RAM that may include an alliance with a larger investment management group. RAM has a highly regarded fixed income and currency business which is complemented by a growing reputation in global equities. In addition, RAM has built a leading position in the growing retail multi-manager market."
Rothschild ' s institutional & retail asset management businesses in France and the US are unaffected by these arrangements.
The family-owned banking group put a positive spin on the RAM decision by simultaneously unveiling the appointment of Mike Bussey, formerly joint chief executive of Schroders Private Banking, to be chief executive of Rothschild's Private Banking and Wealth Management with a brief to create a worldwide integrated private banking operation. He will begin on 1 November.
Rothschild's existing London-based private client business will be combined with its private banking and trust operations in the UK, Switzerland, Guernsey, Bermuda, and nine other key locations, to create a single worldwide private banking business.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Top 10 travel destinations for 2015: From Haiti and Alaska to Namibia and Iceland
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...