GAM dominate PAM Awards

GAM (Global Asset Management) dominated the annual PAM Awards, for the second year running. It won four awards overall, including two for best investment performance (Defensive and Growth portfolios). GAM also came out top in the 'Best Use of Alternative Asset Classes' and 'Overall Service Quality' categories. Last year GAM won five awards.

Other award winners included Coutts Group, who came out top in both the 'Best Use of Long-Only Multi-Manager Structures' and 'Image and Reputation' categories; Morgan Stanley Private Wealth Management (Best Investment Performance: Balanced Portfolio); Kleinwort Benson Private Bank (Product Innovation); JO Hambro Investment Management (Overall Service Quality; Boutiques) and Sarasin Investment Management (Quality and Clarity of Accounting).

"GAM's dominance of the PAM awards for the second year running reflects an exceptional investment process in which alternative investments, such as hedge funds, form an integral part," said James Anderson, the chief executive and editor in chief of London-based Tru-Est Group, the publisher of the PAM Directory, PAMonline, Wealth Management and TheWealthNet.

"Notwithstanding a deteriorating investment environment over the past year GAM managed both to preserve capital and add value to client portfolios by making full use of single and multi-strategy hedge funds together with more traditional long only funds. This was backed up by exceptional service.

"Hedge funds, together with other alternative asset classes, such as private equity, are becoming increasingly commonplace within private-client asset allocations and, given the uncertain environment for global equity markets generally, we expect this to continue in the years ahead. We also expect to see a much greater use of structured products generally, together with other instruments that provide the ability to generate positive returns while protecting the underlying capital. Given investors' declining risk appetite wealth preservation has resumed its primacy as the wealth management's sector's guiding star.

The increasing tendency to outsource elements of the fund management process was reflected in the decision to make an award for best use of multi-manager structures. The inaugural award went to Coutts Group, one of the first major UK wealth management houses to dispense with the traditional approach of managing private client portfolios in preference of a multi-manager structure involving external managers.

Other first time winners included Morgan Stanley Private Wealth Management and JO Hambro Investment Management. Ruffer Investment Management, a first-time entrant pressed strongly for honours in the Best Investment Performance: Balanced Portfolios category while Ansbacher, another debutant, ran GAM close in the Best Use of Alternative Asset Classes category.

"There were a number of new entrants across most of the award categories," continued Mr Anderson. "It is quite clear that many firms have either made, or are in the process of making, significant changes to their investment processes and client service offers, and this is starting to produce results. We are aware of a number of firms that are in a position to challenge for top honours in future years and confidently expect them to do so. This year's winners really may have to look to their laurels next year."

"Moreover, these firms encapsulate the entire size spectrum. Firms that can successfully cater for clients with more than 1 million of assets are not just confined to the wealth management equivalent of the "bulge-bracket", as I hope this year's list of award winners and runners-up can testify."

There were some surprises. Sarasin Investment Management, for example, won the award for Quality and Clarity of Reporting, a category that Chiswell has dominated since the inception of the awards. This was the first time that Sarasin had entered this category.

"The judges noted a general improvement in the quantity of information provided for clients," said Mr Anderson. "But much more can probably be done to make it more intelligible for clients. There is also a suspicion that managers are overloading the client with information, through their efforts to provide similar levels of reportage to that provided for institutional clients. There is a case for brevity."

The awards, which were lead sponsored by Reuters and co-sponsored by TheWealthNet, were presented at a gala dinner at London's Dorchester Hotel on 6 March.

PAM AWARDS 2003 - THE WINNERS

High Net Worth Class (1m and over)

Investment Performance - Defensive

Winner: GAM

Shortlisted: Lazard, SG Hambros

Investment Performance - Balanced

Winner: Morgan Stanley Private Wealth Management

Shortlisted: GAM, Lazard, Ruffer Investment Management

Investment Performance - Growth

Winner: GAM

Shortlisted: Lazard, Morgan Stanley Private Wealth Management

Best Use of Alternative Investment Classes

Winner: GAM

Shortlisted: Ansbacher Wealth, Baring Asset Management

Best Use of Long-Only Multi-Manager Structures

Winner: Coutts Group

Shortlisted: Credit Suisse Private Banking, Merrill Lynch Investment Managers

Product Innovation

Winner: Kleinwort Benson Private Bank

Shortlisted: Merrill Lynch Investment Managers, Morgan Stanley Private Wealth Management, SG Hambros

Quality & Clarity of Reporting

Winner: Sarasin Investment Management

Shortlisted: Chiswell

Image & Reputation

Winner: Coutts Group

Shortlisted: Lazard, Singer & Friedlander Investment Management

Overall Service Quality - Boutiques

Winner: JO Hambro Investment Management

Shortlisted: Chiswell, Singer & Friedlander Investment Management

Overall Service Quality - Large Institutions

Winner: GAM

Shortlisted: Morgan Stanley Private Wealth Management, SG Hambros