Verso IM is the discretionary fund management arm of Verso Wealth Group, and Cockerill’s new role will centre around developing a proposition and range of products for Verso’s clients and advisers. He will work alongside CIO Rory Smith and director and co-founder Andrew Fay, and will also join the investment committee.

Smith said: “We are delighted to welcome Tim to Verso. His wealth of knowledge and impressive track record make Tim a key addition to our investment team. Given the breadth and depth of Tim’s experience, his insights will be invaluable across many aspects of our business so he will be collaborating on multiple initiatives to help us achieve our strategic goals.”

At Rowan Dartington, Cockerill established the firm’s first ESG portfolio and embedded ESG into all aspects of the investment process. He also headed up fund research and built and managed the CPS service. Prior to his time at Rowan Dartington, he led the fund research teams at Ashcourt Rowan and Chartwell Investment Management.

Cockerill said: “I am excited to be joining Verso Investment Management at this point in its strategic journey. It offers exactly the type of opportunity that motivates me. There are ambitious targets to meet but the team is ready to capitalise on the numerous growth opportunities available to it. I am delighted to be involved in something that I can make a real contribution to.”

Alan Mathewson, Verso’s group chief executive, added: “Tim’s arrival is a major statement of our ambition – in addition to his skills as an investment manager, he has a deep understanding of the critical synergy that needs to exist between investment managers and financial advisors to ensure that the investment solutions we develop, meet the needs of our clients.”

This article was originally written by our sister publication, ESG Clarity

In its financial results for the year ending on 31 December 2020, the business reported 5% lower gross inflows at £14.3bn and an 8% fall in net investments, but funds under management (FuM) grew by 11% reaching £129.3bn ($181bn, €150bn).

Despite a very difficult year due to the outbreak of covid-19, national lockdowns and social distancing measures which have impacted the firm’s performance, the wealth manager is sticking to its five-year plan.

SJP chief executive Andrew Croft said the company’s “ambition” is to “deliver growth in new business of around 10% per annum which, with modest help from investment markets and continued high retention rates, would see FuM grow to in excess of £200bn by the end of 2025”.

Such massive growth plans, however, do come at a cost.

The firm revealed that in the next few months it will be simplifying its operations with the removal of work duplication. This will lead to the firm cutting around 200 roles across the SJP business.

Croft added: “We hope that a combination of filling vacant roles across the business and a voluntary redundancy programme in appropriate areas, will mitigate the number of individuals impacted by this difficult decision.”

Asia

Also, SJP said in its results that the Asian arm of the business has “faced some considerable external challenges over the last two years”, from the US and China trade tensions in 2019 to the coronavirus pandemic.

But these did not impact performance, as the arm ended 2020 with a 27% increase in gross inflows at £321m and with net inflows 15% higher than last year at £257.

The Asia business was forced, however, to stop recruiting financial advisers during 2020, as it focused on accelerating its cash result profitability.

As a result, it reduced the number of hires and ended 2020 with a total 132 employed advisers.

Elsewhere, SJP’s DFM subsidiary Rowan Dartington saw its gross inflows drop by 17% and net inflows by 24%. Despite this, FuM saw a small uptick of 3% at £2.9bn.

SJP added: “The combination of lower flows and volatile markets reduced the planned income of the business. However, strong expense discipline resulted in a lower net investment cost in 2020 compared to 2019.

“We expect the investment cost to continue to decline in coming years with the operations becoming cash generative in 2024.”

‘Disappointing’ FSCS

One of the biggest costs for the business was a major spike in the Financial Services Compensation Scheme (FSCS) levy in the UK.

SJP contributed £36.7m last year, a 33% increase from its levy in 2019.

Croft said: “Whilst we continue to support an industry safety net for consumers, the increasing size of the levy is a real concern and source of frustration. Good companies are having to continue to fund a significant cost over which they have no control or influence.”

Croft’s sentiments were echoed by SJP chief financial officer Craig Gentle, who said the sum “increased substantially and disappointingly during the year”.

The firm expected its FSCS levy to grow by around 15%, but the actual bill was “over and above” expectations.

Gentle added: “Although we are fundamentally supportive of a mechanism that protects consumers, we agree with the comment made by the Financial Conduct Authority (FCA) chair Charles Randell when he said ‘…all too often, the polluter doesn’t pay. The cost of bad behaviour by firms which then fail is usually mutualised through the FSCS, rather than borne by the wrongdoers’.

“We welcome the goal that has been outlined by the FCA of redesigning the system to make the polluters pay.”

The SJP subsidiary has named Robert Jukes as chief investment officer.

He joined Rowan Dartington in September 2019 from Canaccord Genuity Wealth Management as deputy chief investment officer

Jukes replaces John Betteridge who retired in July 2020.

HSBC Private Banking

The firm has made changes to its Asian operation.

Adam Lau has taken up a newly created position as regional head of markets solutions for Asia Pacific.

He was previously regional head of equities and structured products for Asia Pacific, and his responsibilities now include fixed income, currencies and commodities in the region.

Lau joined HSBC in 2018 from Natixis where he was head of greater China for equity solutions sales.

Meanwhile, Jeffrey Yap has been promoted to head investment services and product solutions (ISPS) for southeast Asia, moving from his current role of regional head of fixed income, currencies and commodities (FICC) for Asia Pacific.

Yap was appointed HSBC PB’s regional head of FICC, Asia Pacific in 2018, having joined the bank a year earlier from Pacific Alliance Group (PAG), where he was managing director.

He replaces Kenneth Yeo, who has left the bank, according to an HSBC PB spokeswoman.

The Financial Services Compensation Scheme (FSCS)

The UK lifeboat service has appointed three non-executive directors to the FSCS board.

Baroness Nicky Morgan and Wendy Williams will join 1 September 2020, while Cathryn Riley takes on her role on 1 February 2021.

Morgan was the former chair of the treasury select committee and spent nine years as an MP.

She is now a member in the House of Lords.

Williams is HM inspector of constabulary and HM inspector of fire and rescue services, while Riley was previously Aviva’s chief operating officer.

Idad

The global structured investment specialist has promoted Terry Dixon to international sales director.

He will allocate his time between Idad’s head office in Hampshire and the UAE, and will continue to work with advisers in the Middle East and Asia, where he has headed the sales effort for the last four years.

Dixon will also develop new relationships worldwide and oversee the globally-based sales team.

He joined Idad in 2016.

Sedulo Wealth

The UK-based firm has appointed Christy Morrison as wealth management director, Zoltan Molnar as chartered wealth planner and Angela Wise as independent wealth planner.

The trio have worked as a team for over 15 years, joining from WH Ireland.

These hires come immediately after the recent recruitment of Jon Fisher as head of wealth and Jamie Barrington as senior paraplanner, who also joined the firm in June from Grant Thornton.

The Chartered Institute for Securities & Investment (CISI)

The professional body has named Christopher Jehan as president of the CISI Guernsey branch committee.

He takes over from Paul Garrard who has been on the CISI committee for 13 years and president for two years.

Jehan joined the CISI in 2000 becoming a chartered fellow in 2014.

He has over 25 years’ experience in the financial services industry, predominantly in the funds sector.

It is a story that has played out many times throughout our history.

These two powers which I refer to are, of course, the People’s Republic of China and the United States of America.

Last year’s global stage was dominated by these two nations, jostling for economic influence in a trade war.

Since that time, we have seen a global pandemic sweep across the world killing many hundreds of thousands of people.

Covid-19 continues to haunt us, which is widely believed to have originated in Wuhan, a Chinese city I know well having lived there in 2012.

Distrust and suspicion

The fallout from the covid-19 pandemic may have just fast-forwarded what was already a rapidly deteriorating relationship between the west, its allies and China.

UK foreign secretary Dominic Rabb said, at the height of the pandemic in Britain, that it “would not be business as usual with China” once the country had recovered from the crisis.

This tension has, in large part, been driven by the perceived lack of transparency by the Chinese government on where the virus originated from and how it has spread.

Since then, the Chinese Communist Party has pushed through laws in relation to Hong Kong’s security, further souring relations, and recent skirmishes have occurred along the Chinese/Indian border high up in the Himalayas.

The golden age of Sino-British relations declared by the Cameron government, where Xi Jinping was welcomed to London for a state visit and dined with the Queen was only five years ago.

This now seems a distant memory.

What this changing relationship could mean for equity markets remains clouded, markets will react negatively in the short term to any deterioration in relations or renewing of a trade war.

However, we do not have to look back far into the history books to see a clash between two great powers that could offer up some insight.

Not so distant past

The Cold War between the United States and the USSR only ended in 1991.

During this time, markets continued to produce many brilliant companies generating strong returns for investors.

Apple, founded in 1976, and Microsoft, in 1975; two behemoths that are dominating markets today that were created during the cold war.

The charts below show Apple’s share price.

The first shows the share price from 1980- 1991, during much of this time the USSR was engaged in a proxy war in Afghanistan, with the local mujahedeen supported with finance and weapons by the United States.

The second chart shows the share price of Apple from listing to present day.

In that time, wars have been fought and there have been many major events that have rocked markets, but Apple has continued to thrive.

This gives us faith that, over time, the market system that drives the global economy will continue to produce satisfactory returns for the patient, long term investor, regardless of geopolitical instability.

Having said that, China has undeniably been the major driver of global growth over the past few decades and any further breakdown in relations or future trade wars will severely stunt that growth.

The United States will, over time, have to learn to live with a stronger more assertive China.

Xi said in 2015 “the Pacific Ocean is big enough for both powers”, but history teaches us that the likelihood of friction between the two remains high.

What about the UK?

On the domestic stage, many British companies will be hoping to take advantage of any government contracts that may become available due to the changing relationship with China.

Huawei’s involvement in Britain’s 5G network has once again come under scrutiny.

Nuclear power and key infrastructure projects may also be reviewed due to the changing relationship.

Some British businesses will undoubtably benefit from a government refocus on using homegrown businesses to build and maintain key national infrastructure.

Economies around the world are currently suffering from the effects of a lockdown created by the pandemic, and the full impact of this is still unknown.

The last thing that is needed now would be a resumption of a trade war that could further damage a severely weakened global economy.

November deadline

But, with an election in the US on the horizon, the rhetoric from president Trump towards China is likely to increase.

Maintaining a well-diversified portfolio will be key, and companies or funds with exposure to the US/China trade relationship should be viewed with caution.

Many well-known companies may have more exposure to China than is apparent at first glance, and here is where active managers can add value doing the detailed analysis on client’s behalf.

Markets will watch these events closely as the importance of the China US relationship will remain pivotal.

This article was written for International Adviser by Joshua Pond, technical investment writer at Rowan Dartington, a St James’s Place company. 

Jason Windsor has joined the insurer as chief financial officer and executive director of the company effective from 26 September 2019.

Windsor, who joined Aviva in 2010, had been the interim chief financial officer since 1 July 2019 and held a similar role for the firm’s UK arm.

Additionally, George Culmer has been named as an independent non-executive director for Aviva, effective from 25 September 2019.

He joins from Lloyds Banking Group, where he left his role as chief financial officer on 2 August 2019.

Rowan Dartington

The discretionary fund manager has hired Fiona Richards as chief operating officer.

She replaces Adrian Clark who has retired.

Richards joins from Deutsche Bank, where she held several senior roles including chief operating officer, managing director and head of strategy.

Eastspring

The Asian asset management arm of Prudential has restructured its investment departments and introduced two teams.

Ooi Boon Peng will take on the role of head of investment fund strategies in addition to being chief executive for the Hong Kong and Singapore business.

In addition, Kelvin Blacklock, the current chief investment officer, global asset solutions, has been named head of investment solutions.

LGBT Great

Colette Comerford has been named LGBT Great’s lead role model ambassador.

In the newly created role, the current head of inclusion and culture at Legal & General Investment Management will be responsible for engaging with role models in the global financial services industry, on a pro-bono basis.

Invesco

Ben Gutteridge has left Brewin Dolphin after 16 years to join Invesco as director of the newly rolled out Model Portfolio Service.

He will take on the role in 2020 based in the firm’s London office.

He has been at Brewin Dolphin since 2003 and his latest position was head of fund research.

Money and Pensions Service

The UK Money and Pensions service has named 10 people who will make up a newly created steering group to work on the implementation of pension dashboards.

The members are:

• Andrew Lowe, change and data solutions director at the Institute of Faculty and Actuaries and Equinti,
• Dominic Lindley, an independent member,
• Francis Goss, chief commercial officer at communications agency AHC,
• Kim Gubler, chair at the Pensions Administration Standards Association (Pasa),
• Nigel Peaple, director of policy and research at the Pension and Lifetime Savings Association (PLSA),
• Paddy Greene, head of money and consumer rights policy at Which,
• Romi Savova, chief executive of PensionBee,
• Samantha Seaton, chief executive of Moneyhub,
• Will Lovegrove, an independent member, and;
• Yvonne Braun, director of policy, long-term saving and protection at the Association of British Insurers (ABI).

Paradign Norton

The financial planning firm has recruited nine planners across two of its offices.

Sally Matthews, Richard Gray, Pavel Patkov and Robert Dick will be based in London.

While Caroline Harris, Dan Limb, Naomi Baker, Hayley Burston and Laura Meech join the Bristol office.

Estera

The fund services provider had named Sonal Patel as managing director and head of sales for the Americas, Bermuda and the Caribbean.

She will focus on the firm’s growth strategy and development of relationships with US clients and intermediaries for Estera Bermuda, British Virgin Islands and Cayman.

She joins from BNY Mellon, where she was managing director, business development for the US and Americas.

Old Mutual

The South African insurer has appointed Itumeleng Kgaboesele as a chairperson of the remuneration committee, effective from 25 September 2019.

He is also an independent non-executive director and member of the audit committee.

It comes after former chairperson Nombulelo Moholi resigned in early September 2019.

CISI

The Chartered Institute for Securities and Investment has recruited Becky Jones as president of the Manchester branch and north west district branch committee.

She replaces David Gorman of Castlefield Investment Partners who held the position for the last three years.

She is currently a compliance officer at BNY Mellon.