WILLIE Watt is stepping back after 18 years as chief executive of Martin Currie as the venerable Edinburgh fund manager mounts a push to win new business around the world.
Read more: Recipe to spice up Martin Currie Chief executive sets sights on quadrupling of funds
Martin Currie announced that sector veteran Julian Ide has been appointed chief executive of the US-owned firm, with Mr Watt remaining chairman.
Mr Watt said he was proud of the time he has spent running Martin Currie, which has featured big changes at the firm amid upheaval in the sector.
Martin Currie was acquired by US giant Legg Mason in 2014 in a deal that resulted in the firm losing its independence after 133 years in business.
Read more: Martin Currie set for growth with autonomy says US parent
News of the latest change at Martin Currie came on the day pensions and insurance giant Aviva announced a new chief executive had been appointed to lead the firm, a significant employer in Scotland.
Falkirk-born Maurice Tulloch is taking charge of Aviva, five months after it parted company with Mark Wilson following reports investors were unhappy with growth.
Mr Ide has taken charge at Martin Currie at a challenging time for firms that follow the kind of active investing policy it favours. Huge amounts of money have shifted into passive index-tracking funds around the world in a process that appears set to continue.
With $17 billion (£12.9bn) assets under management Martin Currie is a relatively small player in an industry in which firms have been consolidating in search of scale economies and to extend their reach. It employs around 170 people globally, with the majority in Edinburgh.
The 2017 merger between Edinburgh-based Standard Life and Aberdeen Asset Management created a giant, which had around £550bn under management in June.
Read more: Shares in Standard Life Aberdeen slide as major investor sells out
However, Mr Watt made clear he thinks Martin Currie can enjoy a successful future, as a specialist with strengths in areas such as emerging markets. The firm has operations in Australia, Asia and the US.
“I am proud of the nearly two decades I have spent in building our investment capabilities and world class client solutions,” said Mr Watt, who has seen assets under management more than double since cutting the Legg Mason deal.
Martin Currie managed around £5.8bn when Legg Mason took over. It has been able to draw on Legg Mason’s global distribution capability to win business around the world.
Mr Watt said Mr Ide had been the stand out candidate to lead Martin Currie as the firm looked toward the future.
A former head of the Old Mutual Global Investors fund management business, Mr Ide joined as head of distribution and business strategy in May last year tasked with identifying and realizing new opportunities and developing client engagement.
Mr Watt said the new man had achieved early successes in rejuvenating Martin Currie’s engagement in institutional distribution and in engaging strategically with Legg Mason’s distribution network.
Mr Ide said he was excited by the prospects for the firm’s conviction-based investment capabilities across markets.
Mr Watt took charge at Martin Currie in 2001 when the firm was owned by its employees. He previously ran private equity giant 3i’s Scottish business..
In 2002 Mr Watt suggested Martin Currie could reach the scale of Edinburgh neighbour Baillie Gifford, which managed around £20.8bn at the time. Baillie Gifford had £173bn under management and advice in December.
Read more: Aviva boss Mark Wilson steps down after five years
Formerly head of Aviva’s international insurance operations, Mr Tulloch will be on a basic salary of £975,000 with potential to earn around £5m bonuses and incentive payments. He said London-based Aviva had more to do to improve shareholder returns. It employs 1,200 people in Perth and 1,000 in Bishopbriggs.
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