Market watch

CSAM’s trouble at the top

Credit Suisse Asset Management (CSAM) has focused on expanding its hedge funds. Worried about clients switching to rivals, Jeff Peek, vice-chairman of parent institution, Credit Suisse First Boston, transferred the investment bank’s star bond trader Jack di Maio to run a single strategy hedge fund for CSAM. Assets of up to $1bn (E895m) will be raised by August, said Mr Peek. Mr Peek’s investment banking, dollar-based background has led to conflict with CSAM’s Swiss franc-denominated, private banking culture. Swiss stalwart Henry Wegman recently resigned as head of CSAM’s European business. Mr Wegman believed open architecture had peaked, and products should be developed primarily for Credit Suisse’s private banking division. His boss, Mr Peek differed. “Our affiliates account for only a quarter of our business. I don’t think there is any real chance that we could move in a direction dictated by private banking and not supported by the third party market,” he told PWM. Now news has leaked about secret talks Mr Peek has allegedly been conducting in order to jump ship. SEI chosen to run HNWI programme HSBC Republic, the global bank’s international private banking division, has chosen SEI Investments to provide a managed account programme for its high net worth clients. SEI’s roster of external managers will be used to run the Strategic Investment Solutions programme for customers of HSBC Republic’s Geneva and Zurich offices, with at least $2m (E1.8m) to invest. “Our best-of breed strategy is appropriate for the mass affluent and high net worth market, but not for the retail space,” confirmed Joe Ujobai, recently promoted to run all of SEI’s non-US business. SEI enjoys a successful sub-advisory relationship with Italian distributor Mediolanum, for whom it manages over E2bn. But there has been some disappointment that premiums have averaged just E10,000 per client. Mr Ujobai curtailed SEI’s previous relationship with HSBC. Last year SEI bought out the joint venture with HSBC’s French private banking subsidiary CCF. Mr Ujobai said the previous experience was good for both partners. “It showed us that a joint venture was not the right relationship in which to work together.” SEI, which manages E6bn for European clients, has been developing the new programme with HSBC for nine months.