Category: Press Releases

• Dani Hristova joins from Nordea Asset Management, having previously worked at Schroders Investment Management and Legal and General Investment Management
• Appointment follows the announcement of new Chairman, Sebastian Stewart, and seven new Board members earlier this year

The Independent Investment Management Initiative (“IIMI”), a boutique asset management think tank whose membership accounts for approximately £500 billion in client assets, has appointed Dani Hristova as its new Chief Executive Officer. The appointment follows the engagement of seven new Board members as well as a new Chairman, Sebastian Stewart earlier this year, deepening the value that the IIMI can bring to its membership.

In her new position, Hristova will work closely with Stewart and the Board to deliver on the IIMI’s refreshed core aims – which includes promoting the strengths of boutique asset managers and helping to shape the industry’s regulatory environment – as well as facilitating commercial opportunities for its growing membership base.

Hristova joins from Nordea Asset Management, where she was responsible for building the firm’s presence in the UK insurance market. This involved developing Nordea’s entry strategy into the insurance sector, as well as representing Nordea within the insurance market more broadly. She previously held positions at Schroders Investment Management and Legal and General Investment Management.

The IIMI provides an independent, expert voice in the debate over the future of the asset management industry, supporting boutique asset managers amidst a backdrop of increasing consolidation and fast- changing regulations. Together with the Board, Hristova will drive the IIMI towards fulfilling its ambition to shape a regulatory environment that supports boutiques, drive best practice and promote the strengths of specialist asset managers.

Sebastian Stewart, Chairman at the IIMI, commented: “Dani has a deep understanding of the challenges that both asset managers and their clients face as we navigate an evolving and increasingly consolidated industry landscape. Dani’s experience and skillset make her very well-placed to help the IIMI’s members promote the strength of investment specialism and innovation, drive best practice and ultimately provide market-leading investment solutions to investors around the world. On behalf of all our members, I also want to thank Toby Illingworth, who has now stepped down as Executive Director, for his significant contribution to the IIMI over the last 10 years.”

Dani Hristova said: “I am delighted to be joining the IIMI as its new Chief Executive Officer. The asset management industry is facing a multitude of complex challenges with respect to changing regulations in a post-Brexit world – mounting cost pressure, responsible capital allocation and ensuring suitable investment solutions are delivering long-term value to clients, to name a few. Having worked for some of the industry’s financial giants, who leverage scale to help address these challenges, it is imperative that smaller, entrepreneurial firms are well-represented as we jointly navigate these industry challenges and focus on the best outcomes for investors. The IIMI raises the voice of entrepreneurial, specialist investment boutiques that are entirely focused on and aligned with the interests of their clients, and I am excited to play an important role in driving the IIMI and its members forward through the next period of the organisation’s growth”

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A picture of Dani is available upon request.

About the Independent Investment Management Initiative (“IIMI”):

The Independent Investment Management Initiative (“IIMI”), formerly New City Initiative (“NCI”), is a member-led industry think tank representing entrepreneurial, specialist investment boutiques that prioritise specialism over scale in delivering the best results to investors. The IIMI provides its members with an expert voice in the debate over best practice and the future of financial regulation, with the aim of building a better future for specialist asset managers.

Founded in 2010, today the IIMI is comprised of close to 40 leading boutique asset management firms from the UK and the Continent, managing approximately £500 billion and collectively employing several thousand people.

www.theiimi.org

Media Enquiries:

iimi@tbcardew.com
Tania Wild, +44 (0)7425 536903
Emma Pascoe-Watson, +44 (0)7774 620415

• The IIMI strengthened by the appointment of seven new Board members
• Core aims redefined: increase engagement with regulators to support boutiques and promote competition, facilitate commercial opportunities and drive best practice across the membership

The Independent Investment Management Initiative (“IIMI”), a boutique asset management think tank whose membership accounts for approximately £500 billion in client assets, has appointed Sebastian Stewart as its Chairman as it embarks on the next phase of its development. The new, strengthened Board has significant and varied experience across the asset management sector, deepening the value that the IIMI can bring to its membership.

The new Board has refreshed its core aims, which are to:

• Shape a regulatory environment that supports boutiques and promotes competition
• Promote the strengths of boutiques and facilitate commercial opportunities for members
• Drive best practice across the membership

Sebastian Stewart has been on the Board of the IIMI since 2017 and became Deputy Chairman in 2019. He is also a Partner and Head of Client Services at Somerset Capital Management LLP, having graduated from the University of Edinburgh with a First-Class degree in Mathematics and Business Studies. He is a CFA charterholder and holds an Executive MBA from Bayes Business School.

The IIMI provides an independent, expert voice in the debate over the future of the asset management industry. Its aim is to help shape a more competitive environment for boutique asset managers which prioritise specialism over scale in delivering the best results for clients. The IIMI’s new leadership, strengthened Board, and ambitious aims and objectives will greatly enhance the services it can offer to its members.

Sebastian Stewart, Chairman at the IIMI, commented: “I’m delighted to take over from Nick Mottram as Chairman after his successful three-year tenure. The IIMI was established to give a voice to boutique asset managers’ interests and help shape the debate on financial regulation and best practice. It is as important as ever that we support the crucial role specialist asset management plays in the financial services sector in the UK and globally. I look forward to working with my colleagues on the Board to build on the excellent work of my predecessors while bringing fresh perspectives to the organisation. We are committed to supporting entrepreneurial specialist asset management firms, which are increasingly important in an industry dominated by global financial giants.”

Under Sebastian’s chairmanship, the new Board will comprise:

• Rose Beale, Responsible Investment Lead at Findlay Park
• Daniel Pinto, CEO of Stanhope Capital
• Charles Scott Plummer, Head of Institutional Solutions at Waverton Investment Management
• Charlotte Yonge, Fund Manager at Troy Asset Management
• Dan Brocklebank, Head of UK at Orbis Investments
• Edward Guinness, CEO of Guinness Global Investors
• Nicole Harrington, COO of Evenlode Investment Management
• Philip Reed, General Counsel at Independent Franchise Partners
• Helme Harrison, Head of Distribution at Tellworth Investments
• Sondre Myge, Head of ESG at SKAGEN Funds
• Toby Illingworth, Executive Director of the IIMI

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Pictures of the IIMI Board members are available upon request.

About the Independent Investment Management Initiative (“IIMI”):

The Independent Investment Management Initiative (“IIMI”), formerly New City Initiative (“NCI”), is a member-led industry think tank representing entrepreneurial, specialist investment boutiques that prioritise specialism over scale in delivering the best results to investors. The IIMI provides its members with an expert voice in the debate over best practice and the future of financial regulation, with the aim of building a better future for specialist asset managers.

Founded in 2010, today the IIMI is comprised of close to 40 leading boutique asset management firms from the UK and the Continent, managing approximately £500 billion and collectively employing several thousand people. IIMI Singapore was launched in 2019.

www.theiimi.org

Media Enquiries:

iimi@tbcardew.com
Tom Allison, +44 (0)7789 998020
Tania Wild, +44 (0)7425 536903
Emma Pascoe-Watson, +44 (0)7774 620415

A new survey conducted by IIMI, the boutique asset management think tank formerly known as New City Initiative (NCI), reveals that 70% of its members have already returned to the office in some capacity, with a further 18% intending to do so during the Summer, and 10% by Autumn.

The full results of the survey, which was conducted among IIMI’s diverse membership to find out about boutique asset managers’ preparations for returning to the office, are included in IIMI’s latest blog “Getting back into the office: Boutiques lead the way”.

Other key highlights include:

Attitudes towards flexible working:

• 77% of firms said they planned to adopt a flexible working approach; 11.6% confirmed they would not do so
• Of the firms which said they would adopt flexible working:
  • 51% plan to let their employees work from home 1-2 days per week
  • 32% said they would allow staff to work from home 2-3 days/week
  • 16% of members are open to letting employees work from home 4-5 days/week
• Of the firms who are reticent about introducing flexible working:
  • 28% cited productivity concerns as the primary reason for being sceptical
  • 28% warned it could have an adverse impact on training

Attitudes towards vaccinations/testing:

• 56% of IIMI members said they would not make it mandatory for staff to be either tested and/or vaccinated
• 20% said staff must be regularly tested but not necessarily vaccinated
• 7% will insist that employees be regularly tested and fully vaccinated; 16.2% said they are currently unsure
• Of those firms which will not require staff to be fully vaccinated or regularly tested:
  • 27% said indirect discrimination risk was an issue
  • 23% said such a policy would pose serious ethical concerns

IIMI will be conducting qualitative interviews with its membership about their post-COVID-19 working practices in the next few weeks. The findings of this more detailed paper will be published in the early Autumn.

Nick Mottram, Chairman of the Independent Investment Management Initiative, commented:

“After 18 months of stop-start lockdown restrictions, financial institutions – including asset managers – are busy assessing the logistics of bringing their staff back into the office once again. Boutique firms appear to be leading the charge here, with 70% of our members saying they have already returned in some capacity.

While the majority of our members have said that they will be adopting some form of flexible working approach, some firms have voiced concern that staff training and the ability to innovate are not as conducive when performed behind a webcam or through intermittent attendance in the office.

What is clear is that there is no one-size-fits-all solution: the process of bringing employees back into the office will not be straightforward, and a number of ethical issues remain unanswered, such as treating vaccinated and unvaccinated staff differently. We will be speaking with our member firms about their post-COVID-19 working practices in the next few weeks, and look forward to communicating our findings in due course.”

ENDS

A new survey by IIMI, the boutique asset management think tank formerly known as New City Initiative (NCI), today reveals that over three quarters of its members believe they will benefit from complying with the European Union (EU)’s Sustainable Financial Disclosure Regulation (SFDR), which came into effect in March.

The full results of the survey, which was conducted among IIMI’s membership to gather their views on the SFDR and how it will impact their firms and the wider industry, are included in IIMI’s paper “Regulating ESG: A step in the right direction”, published today.

Other key highlights from the paper include:

• 61% of respondents believe that the SFDR will improve competition in the asset management industry, while 22% feel it will have a negative impact
• Some members feel the rules could disadvantage boutiques as the supplementary costs will be felt disproportionately
• Some members are calling on EU regulators to cap the amount which data providers can charge for ESG research and analytics, in order to create a more even playing field between boutiques and larger firms
• 66% of the membership have already integrated ESG work into their investment teams’ processes
• Over a quarter (27%) have decided to hire ESG specialists specifically to deal with the new regulations
• There is particular uncertainty around ‘Article 8’ designation, which IIMI is calling for clarification on

Nick Mottram, Chairman of the recently rebranded Independent Investment Management Initiative, commented:

“As scrutiny around ESG in asset management continues to grow, this research suggests our members largely believe SFDR can be a force for good in the industry. However, IIMI’s membership is diverse and there is a significant minority which believes the new rules will hamper competition, favouring the resource-rich, larger firms at the expense of smaller, independent, entrepreneurial firms. Additionally, there are reservations regarding uncertainties around Article 8 designation, and we do believe that these need to be clarified.

“IIMI fully supports the principles behind an ESG taxonomy as we believe that it will be vital in eliminating the risk of greenwashing, which is an issue of concern in the industry. We also can’t stress enough how important it is that ESG standards across major markets do not diverge excessively, so as to avoid unnecessary confusion.

“It also doesn’t surprise us that a number of members are calling for a cap on the amount which data providers can charge for ESG research and analytics so that they are not at a disadvantage to larger firms, as we have often seen boutiques be disproportionately impacted by the costs of complying with new regulations. Our members consistently rise to meet the challenges that the industry and investment markets throw at them, and there is no doubt that they will adapt and thrive as ESG becomes integral to the service that clients demand.

“ESG is very much the issue of the day and so it seems fitting for us to focus on this in our first paper under our new name, the Independent Investment Management Initiative, or IIMI for short. We have been going strong for over 10 years but felt it was time to choose a name that better encapsulates who we represent and what we stand for. Giving a voice to independent investment management firms over the future of financial regulation has always been at the heart of what we do, and we shall continue to promote the key role that our members, and all boutiques, play in preserving the stability and long-term focus of the financial sector at large.”

ENDS

Media enquiries:

TB Cardew (PR adviser to IIMI)                     020 7930 0777

Alycia MacAskill                                                07876 222 703

About Independent Investment Management Initiative (IIMI):

Independent Investment Management Initiative (IIMI), formerly New City Initiative (NCI), is a think tank that offers an independent, expert voice in the debate over the future of financial regulation. Founded in 2010, IIMI counts amongst its members some of the leading independent asset management firms in the City of London and the Continent. IIMI gives a voice to independent, owner-managed firms that are entirely focused on and aligned with the interests of their clients and investors. Over the last decade, an old fashioned “client-centric” approach has enabled entrepreneurial firms in the Square Mile and beyond to emerge as a growing force in a financial industry dominated by global financial giants. Now, more so than ever, these firms play a key role in preserving the stability and long-term focus of the financial sector, which is of benefit to society at large.

Today IIMI is comprised of 46 leading independent asset management firms from the UK and the Continent, managing approximately £500 billion and employing several thousand people. IIMI Singapore was launched in 2019.

Core aims:

• To serve as an independent, expert voice in the debate over financial reform;
• To restore society’s trust in the financial sector;
• To promote the values and practices of owner-managed firms which align their interests with those of their clients; and
• To raise awareness of the positive, stabilising contribution small entrepreneurial firms make to the economy and society as a whole.

New City Initiative (NCI) rebrands to the Independent Investment Management Initiative (IIMI) Boutique asset management think tank New City Initiative (NCI) today announces that it has rebranded to the Independent Investment Management Initiative (IIMI). The new website can be found at www.theiimi.org.

The IIMI was founded as New City Initiative in 2010 by 25 founding members with £75 billion under management, in order to give a voice to independent, owner-managed asset management firms in the debate over the future of financial regulation. Today, it is comprised of 44 leading independent firms from the UK and Europe, managing over £500 billion and employing several thousand people. The IIMI Singapore was launched in 2019 in response to demand from asset managers in the region.

Commenting on the rebrand, Independent Investment Management Initiative Chairman Nick Mottram said:
“We are very pleased to unveil our new name, the Independent Investment Management Initiative. New City Initiative was founded in the wake of the global financial crisis at a time when the City of London was undergoing a time of significant regulatory change as it sought to re-build its reputation. However, we felt that the name had less relevance today, especially since we now have members in Continental Europe and Singapore, and we wanted a name with global resonance.

The Independent Investment Management Initiative far better encapsulates who we represent and what we stand for. Our members are independent and owner-managed, and this is what really defines and differentiates them, since they are entirely focused on and aligned with the interests of their clients. We firmly believe that boutiques play an important role in preserving the stability of the wider financial sector, in addition to encouraging competition, and we shall continue to promote their values and practices, while giving them a voice in the
conversation around financial regulation.

ENDS

Media enquiries:
TB Cardew (PR adviser to IIMI) 020 7930 0777
Alycia MacAskill 07876 222 703

About the Independent Investment Management Initiative (IIMI):
The Independent Investment Management Initiative (IIMI), formerly New City Initiative (NCI), is a think tank that offers an independent, expert voice in the debate over the future of financial regulation. Founded in 2010, IIMI counts amongst its members some of the leading independent asset management firms in the City of London
and the Continent. The IIMI gives a voice to independent, owner-managed firms that are entirely focused on and aligned with the interests of their clients and investors. Over the last decade, an old fashioned “client-centric” approach has enabled entrepreneurial firms in the Square Mile and beyond to emerge as a growing force in a financial industry dominated by global financial giants. Now, more so than ever, these firms play a key role in preserving the stability and long-term focus of the financial sector, which is of benefit to society at large.

Today, the IIMI is comprised of 44 leading independent asset management firms from the UK and the Continent, managing approximately £500 billion and employing several thousand people. IIMI Singapore was launched in 2019.
Core aims:
− To serve as an independent, expert voice in the debate over financial reform;
− To restore society’s trust in the financial sector;
− To promote the values and practices of owner-managed firms which align their interests with those of their clients; and
− To raise awareness of the positive, stabilising contribution small entrepreneurial firms make to the economy and society as a whole.

IIMI, the boutique asset management think tank, has today published a paper calling for the development of a new UK fund structure that could rival UCITS and AIFs, while decentralising fund management in the country and encouraging regional growth. The full paper, entitled “Decentralising Fund Management: Encouraging Regional Growth”, can be found here.

As the UK government works towards economic recovery and seeks to “level up” prosperity and opportunity across the country, IIMI is advocating the development of a fund structure that, if successful, could generate an upsurge of new roles in the UK funds industry. IIMI believes a bespoke UK fund structure could facilitate the onshoring of more asset servicing roles that have traditionally been based in Ireland and Luxembourg, many of which do not necessarily need to be carried out in London. Owing to the rental cost savings of locating an office outside of the capital, and the abundance of talent available at a lower cost, a number of leading fund administrators already have thriving offices across several regional UK cities, including Birmingham, Bournemouth, Belfast, Glasgow and Liverpool.

IIMI asserts that a widening of the asset management industry’s UK footprint provides the opportunity for wealth to become more evenly distributed from affluent regional cities to nearby towns, which are among the country’s most depressed areas. The government could potentially incentivise financial institutions to invest in infrastructure and education in especially deprived parts of the UK to help promote long-term economic regeneration.

In order to gain traction, NCI proposes that UK retail and institutional investors currently invested in UCITS be given the opportunity to convert their holdings into the new UK fund structure. To facilitate this, managers should make switching as easy as possible. For example, early stage converters could be given fee discounts in the new fund vehicle. Furthermore, IIMI believes strategic tax incentives, such as exempting non-UK investors from paying UK tax on investments, could stimulate foreign investment in UK asset management firms, which in turn could further promote employment in the wider financial services industry, particularly outside of London.

IIMI notes that the new structure would need to incorporate the investor protections presently enshrined under the UCITS and AIFMD regimes, and cites a number of potential improvements, including the tightening of the prescriptive liquidity arrangements mandated under UCITS, in light of last year’s Woodford episode. IIMI believes that such a fund structure would ultimately provide both retail and institutional investors with more choice and encourage competition.

Summary of NCI’s proposals

• In order to stimulate asset management and asset servicing jobs following Brexit, the UK should create its own fund brand. This is something which IIMI is willing to engage with the government on.
• If this fund structure is successful, it could spark further growth in UK asset servicing and asset management roles. The government should encourage these businesses to launch outside of London.
• Similarly, incentives – potentially tax benefits – should be given to financial institutions to invest in infrastructure and education in especially deprived parts of the UK. This could help promote long-term economic regeneration.
• IIMI is willing to facilitate conversations between the industry and regional economic bodies to help support the funds’ industry development outside of London.

“IIMI believes that the roll-out of an effective domestic UK fund structure could materially strengthen the financial services industry, particularly outside of London. By encouraging the asset management industry to widen its geographical footprint within the UK, it could result in a more even distribution of wealth across the country, supporting the Northern Powerhouse and the Midlands Engine, and enabling local economies to flourish. Some of the biggest names in global finance already have a sizable UK regional presence but we believe there is still a huge amount of room for growth. As we face both fresh and familiar challenges, from the COVID-19 economic shock to Brexit, we believe the time for this new generation fund structure is now, and we’re ready to engage with government and industry to realise this vision.”

Nick Mottram, Chairman of IIMI

ENDS

IIMI, the boutique asset management think tank, is calling for the development of a UK fund structure that could compete with UCITS and AIFs in Asia-Pacific (APAC), in order to strengthen the global distribution footprint of UK funds and their position in the region. The full paper, entitled “Facilitating Connectivity: Strengthening UK- APAC Fund Ties”, can be found here.

IIMI also proposes that the UK should further leverage the Mutual Recognition of Funds (MRF) scheme with Hong Kong while negotiating further MRFs with other critical markets, most notably China. In addition, the UK should become a signatory to at least one or both of the Asia Region Funds Passport (ARFP) or ASEAN Collective Investment Scheme (CIS).

Background

The UK’s asset management industry manages around £400 billion on behalf of clients in APAC. Currently, many of the UK investment products that are sold to institutional and retail clients in APAC are regulated under EU law, principally either UCITS or the Alternative Investment Fund Managers Directive (AIFMD).

Previous uncertainty about the future of delegation and the EU’s ongoing refusal to extend the much vaunted AIFMD marketing passport to core APAC jurisdictions (namely Hong Kong and Singapore) have damaged the EU’s reputation in APAC circles.

As a result, some experts see this impasse as an opportunity on which the UK can capitalise. In addition, should post-Brexit equivalence fall short in trade negotiations, the impetus for the UK to create its own fund regime and to build in mutual links with APAC, and the rest of the world, becomes greater.

Proposals

IIMI believes that there are several ways in which the UK funds industry could strengthen its distribution footprint in key APAC markets, where many of IIMI’s members see a large growth opportunity:

• UK policymakers/regulators should capitalise on the UK funds industry’s opportunity to further cement itself in APAC by developing a UK-own fund brand to compete with UCITS and AIFs in the region.
• The establishment of such a UK fund brand will require input from industry and government, and this is something the IIMI is willing to facilitate in coalition with other associations and market participants. The process of setting up this new fund structure will not be easy, but IIMI believes it is certainly achievable.
• The UK should further leverage the MRF scheme with Hong Kong, and regulators ought to negotiate further MRFs with other critical markets, most notably China.
• The UK should become a signatory to a regional fund passporting regime such as the ARFP or ASEAN CIS in order to maximise its APAC distribution footprint.

“IIMI believes the UK funds industry has an excellent opportunity to further embed itself in APAC, where a number of our members see the largest growth potential. Developing a UK fund brand to compete with UCITS and AIFs in the region would be one way of doing this, and would be beneficial for the UK and Asian economies. As the representative of leading owner managed firms in the UK and Europe, IIMI has already extended the UK fund management community’s links with APAC through the 2019 launch of IIMI Singapore, and we are keen to build on this.”

Nick Mottram, Chairman of IIMI

ENDS