PHILADELPHIA - Efforts to secure a long-term interest in a talented portfolio management team resulted in the spinoff of Philadelphia International Advisors from Glenmede Trust Co.
The new firm, which comprises Glenmede's former international equity portfolio management team, opened its doors Jan. 1. It started with about $3 billion in assets from Glenmede and has brought in $50 million in new assets since opening. Glenmede holds about 25% ownership in Philadelphia International Advisors; the nine founding partners own the rest.
The deal allows the portfolio managers to create an entrepreneurial environment, said James Lobb, one of the founders, while maintaining a relationship with Glenmede. Glenmede will provide administrative and back-office support for PIA while the new firm's staff will handle marketing, sales and client service, in addition to portfolio management. PIA's offices are located in the same building that Glenmede occupies in downtown Philadelphia.
Aside from the fact that the deals give PIA autonomy, it also gives Glenmede a long-term stake in the international equity team. Al Piscopo, chief executive officer at Glenmede, said the restructuring was the best way to adequately compensate the international team for the growth they had achieved. Glenmede approached the international equity team about the deal, said Mr. Piscopo, rather than the other way around: "We recognized that we had a long-term issue that we didn't want to become a problem so we headed it off well ahead of that."
Along with Mr. Lobb, who is director of sales and service at PIA, the other partners are: Andrew Williams, lead international equity portfolio manager; Robert Benthem de Grave, Peter O'Hara and Frederick Herman, international equity portfolio managers; Christopher Delpi, director of international equity research; Jane Webster, sales manager; Kent Weaver, director of client service; and Mary Evans, manager of portfolio administration. (All had similar positions within the international equity unit at Glenmede.) In all, PIA has about 25 employees.
Of the $3 billion the firm manages, about half is from international equity institutional separate accounts and half is from two mutual funds, the Glenmede International Fund and the Glenmede Institutional International Fund.
Mr. Lobb said the investment process and philosophy remains the same as when the team worked for Glenmede. Right now the firm is focusing on its active international developed market portfolio and has no plans to expand it's roster in the near future.