LONDON -- Julius Baer Investments Ltd. will not replace the six-person active equity team lifted out by Northern Trust Global Investments to staff its new London subsidiary, Northern Trust Global Investments (Europe) Ltd.
Andrew Parry, who had been head of global equities at London-based Julius Baer, will lead the international equity team and become chief investment officer of NTGI's new European division Aug. 14.
Mr. Parry will bring with him Baer portfolio managers Simon Wright, Jonathan Sellers, Diane Jones and Marina Marchand. Chris Deazeley, a risk analyst, also will move with the Baer team to NTGI Europe.
The amount managed at Baer by Mr. Parry's team in London in active EAFE and Europe-only strategies for institutional clients is disputed. Kevin Rochford, managing director and head of NTGI Europe, said he understood that the Parry team managed more than $1 billion for institutional clients worldwide. Jonathan Minter, vice chairman and managing director of Julius Baer in London, said the team managed "several hundred million dollars less than that."
Whatever amount the equity team actually managed, rather than try to rebuild the team in London, Julius Baer will recommend that clients switch their equity mandates to one of its three sister investment management companies, which will continue to manage equities from Germany, the United States and Switzerland, said Mr. Minter.
"With more than 150 people in our organization around the world and an institutional client base, we are introducing our London equity clients to our other money managers in other locations," he said.
Overall, the Julius Baer stable of money managers runs $40 billion for institutional investors; about $6 billion of that is managed in New York and London by affiliates that work closely together.
The London office of Julius Baer is best-known, anyway, as a fixed-income manager. "The bulk of the business in London is in bonds," said Mr. Minter, with 90% of the company's assets under management invested in fixed-income strategies. Six fixed-income portfolio managers and five bond research analysts are in Julius Baer's London operation, he said.
Chicago-based NTGI, on the other hand, is actively ramping up its international equity program, with London as its new base and Mr. Parry's team as the anchor for active international stock management, an asset class in which NTGI needed fuller capabilities, Mr. Rochford said.
NTGI now manages more than $1.3 billion from Chicago for retail and institutional clients in active and passive strategies based on the Morgan Stanley Capital International Europe Australasia Far East index. There is slightly less than $3 billion managed for 46 non-U.S., mainly European, clients in a range of asset classes.
The Chicago-based investment management team, which will remain in the United States, is headed by Robert LaFleur, chief investment strategist of Northern Trust Global Investors, and includes Mary Ainger, Svein Backer, Sandra Rocha and Eva Trzebunia. A fifth member of Mr. LaFleur's team, Cyretha Irving, already is based in London. Mr. Rochford said the Chicago- and London-based investment teams will be integrated and eventually will co-manage, for example, NTGI's three international equity mutual funds.
Passive non-U.S. strategies will continue to be managed from Chicago and are next in line for expansion, Mr. Rochford said.
NTGI's global expansion plans have come a long way in 41/2 years, since just two investment professionals were based in London, both of whom focused solely on U.K. investments, said Mr. Rochford. By the end of this year, he expects NTGI will have 24 investment management personnel in the United Kingdom, Europe, the Middle East and the Far East, with a much broader global emphasis.
"In three years, you'll see an even different company. We're just beginning to scratch the surface in the developed countries of continental Europe -- the Netherlands, Scandinavia, for example. And there are huge changes afoot in France and Germany that present very big opportunities for our global expansion," Mr. Rochford said.