The dozen investment managers who quit Quilter Cheviot in the summer were all ex-Cheviot, including 11 directors, with rumours now suggesting some are looking to set up a rival firm, Wealth Manager can reveal.
Although Quilter (the parent company) CEO Paul Feeney (pictured) dismissed their departures as ‘a drop in the ocean’ at the time, the seniority of the individuals can now be disclosed.
James Mann, Gerald Rothwell and Tom Lahaise were all founding partners of Cheviot Asset Management and served as investment directors at Quilter Cheviot.
David Malpas, James Hardin, John Cowper-Coles, Edward Buxton, Avril Barnes were all previously partners at Cheviot prior to its acquisition by Quilter in 2012. Peter Stubbington and David Walker were also at Cheviot prior to the acquisition.
They all served as investment directors in the combined firm’s London office.
Another investment director, William Buckhurst, was one of the first employees to join Cheviot. Charlie Todd, who was an investment adviser, also came over from Cheviot, where he was on Malpas’ team.
The company said that the dozen are now all on gardening leave and their clients have been informed and are now being looked after by new investment managers.
A spokesperson said: ‘Contingency planning for such events has been in place for some time and we have been investing in our team, increasing our investment manager headcount by nine between June 2017 and June 2018 to more than 170.
‘There will be further investment professionals joining the London office in the remainder of this year and the beginning of next year, further boosting the current team of 60 (after accounting for the above departures).’
The news comes after the company announced earlier this month that chief executive Martin Baines would be stepping down from his role following a major restructure. He was replaced by Andy McGlone, who joined the business in 1994 and more recently led its front office.
Baines will remain as a senior adviser throughout 2019.
12 resignations since flotation, which is expected to lead to higher than trend outflows in 12 to 18 months’ time.
But Feeney said that it was expected that some would leave after the initial public offering and that compared to the total headcount at the business it was ‘a drop in the ocean’.
Over the first half, the company reported net inflows of £3 billion, down from £3.4 billion year-on-year, with assets under management up 2% to £116.5 billion.