Credit Suisse (CSAM) has vowed its multi-manager arm will not suffer despite the resignations today of flagship fund managers Gary Potter and Robert Burdett.
However, industry experts say the departures will come as a “disappointingly bitter blow” to the firm.
It is not yet known where the duo, who were put on immediate gardening leave, are heading, although IFAonline.co.uk understands it is not Psigma or Axa, contrary to industry rumours.
CSAM has confirmed Scott Spencer and Kelly Prior, who both worked on the multi-manager teams under Potter and Burdett, will run the multi-manager range in the short term under the direction of head of manager selection, Ed Robertiello.
The resignations have come as a blow to CSAM which, in the last 18 months, has also lost Lee Harrison and Errol Francis from its income division. This is on top of Bill Mott's recent exit.
Managing director, Wesley McDade, says CSAM will not suffer as a result of today’s departures.
"We are committed to the UK multi-manager platform and will be adding resources to the current London-based team in the near future,” he says.
“We have a successful multi-manager platform that operates on a team and process-driven basis.
“Gary and Robert's departure will not have any immediate impact on the sound management of client portfolios.”
However, industry experts say CSAM face worrying times ahead.
Anna Bowes, investments manager at AWD Chase de Vere, says: “Confidence in Credit Suisse is at an all time low and therefore it’s likely to be difficult for them to replace Gary and Robert.
“But they’ll have to do something and soon, in order to stop money hemorrhaging from the business, especially when the multi manager business has been the successful arm of a company plagued by fund manager defections, such as Bill Mott.”
A spokesperson for Hargreaves Lansdowne notes the duo will do well elsewhere.
“[Potter and Burdett] have good track records and are in a good bargaining position to either set up on their own or move to another boutique firm.”
Darius McDermott, managing director of Chelsea Financial Services, adds: “This is obviously very bad news for Credit Suisse, particularly on the back of the income fund difficulties they have had.
“To lose your two flagship fund managers is a bitterly disappointing blow.”
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