Rajiv Jain's departure as fund manager at Bank Vontobel has left its mark in the Zurich-based bank's books.
Asset management contributed by far the most to Vontobel's profit in the first six months of 2016, the results published today showed. But the departure of Florida-based Rajiv Jain, a much-feted fund manager of Indian origin, didn't go by unnoticed.
Institutional clients pulled 11.8 billion francs out, according to the report. Vontobel was quick to play down the effect of losing a top talent: «The stability of the current experienced team as well as the continuation of the existing robust investment process that has been in place for more than two decades were of decisive importance in maintaining the trust of investors and limiting the outflows that usually follow when these types of changes occur.»
Withdrawals Now Concluded
Those customers, whose statutes dictate an automatic withdrawal of assets in case a fund manager departs, have done so in the first half of 2016, Vontobel said. The reviews of consultants and clients triggered by Jain's decision have also been concluded.
Vontobel had net new money of 3.1 billion francs in the first half of 2016, excluding the so-called quality growth boutique managed by Jain. Last year, the bank had attracted 6.4 billion francs in the same reporting period and 1.6 billion by year end.
Successor Appointed
The private bank has implemented a succession plan for the unit affected by the departure of Vontobel's coveted asset management expert. Matthew Benkendorf (pictured above), Jain's deputy, has taken over the responsibilities of his previous boss.
«More than 50 percent of advised assets now come from the fixed-income boutiques and the multi-asset-class boutique,» Vontobel said, signaling its intent to further diversify.
Staggering Paycheck
Jain managed some 50 billion francs in assets in his boutique at Vontobel and had been able to demand an enormous pay check because of his success – at time making him a better paid employee than his even his boss, CEO Zeno Staub.
