Gerrard's Private Client Management division is to jettison 2,000 clients, each with less than £30,0...
Gerrard's Private Client Management division is to jettison 2,000 clients, each with less than £30,000 invested in its discretionary service.
The group has given clients one month's notice to exit its discretionary portfolio management arm, with the deadline set at 13 February. The clients involved comprise a mix of direct and intermediary-introduced business with funds totalling around £20m. Gerrard contacted intermediaries in December about the move but direct clients were told in mid-January.
Brian Tora, chairman of Gerrard's investment committee, said both client types have been offered free switches into alternative in-house investment services or heavily discounted switches into Old Mutual funds. Intermediaries will be left to decide what to do with their clients' portfolios, while direct clients will be advised on alternative investment strategies.
Advice will be personalised where possible, with recommended options to include switching to rival multi-manager offerings, carrying out in specie transfers to alternative private client managers or taking cash. Liquidation of assets will be carried out without charge but in specie transfers will be charged per stock moved.
Tora conceded some clients started out with more than £30,000 but lost money in market moves. The clearout is expected to be a one-off.
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