| Foreign firms find reasons for ‘being on the ground’ |
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| Irish based institutional fund managers are benefiting from increased competition in the brokerage market-place, with international based firms now also servicing Ireland. Moreover, some international firms have established offices on the ground. Fiona Reddan profiles the Irish operations of international broking firms Collins Stewart, Citigroup and ABN AMRO. |
Although Irish investment managers are serviced by a wide variety of international brokerages, as the international section of this year’s survey attests to, a number of such firms have also put down roots in Ireland.
One such firm is Collins Stewart. The Irish subsidiary of UK stockbroking firm Collins Stewart Tullett plc, Collins Stewart opened its Irish office in 2003. According to managing director of the Irish operation, Gary McCarthy, the firm saw an opportunity for an independent player to operate in the Irish market, a firm who ‘wasn’t conflicted by corporate ties’.
‘A local presence is important’, says McCarthy, who, before joining Collins Stewart, worked in international equities with ABN AMRO in Dublin, adding, ‘ as it is important to build relationships with clients’.
The Dublin operation, which now employs four people, serves as a distribution operation for the group, with sales done out of Dublin, and research and execution services via the UK offices. The firm focuses on institutional investors, and doesn’t offer any private client services.
The Irish firm’s parent, Collins Stewart Tullett plc, was founded in 1991 as a partnership with Singer & Friedlander, and was part of that group until a management buy-out in May 2000. Quoted on the London Stock Exchange, the firm employs some 400 staff operating in offices in London, Dublin, New York, the Channel Islands, Isle of Man, and Uxbridge, and its activities span institutional and private client stockbroking, market making, corporate finance, fund management and the supply of on-line financial information.
The firm is in the process of de-merging from its inter-broker dealer business, Collins Stewart Tullett, and has recently announced it is to acquire Hawkpoint Partners Limited, a UK corporate advisory firm, operating from offices in London and Paris, with approximately 120 employees.
McCarthy sees this development as offering opportunities for the Irish operation to move into corporate finance.
The firm is already an established player on London’s Alternative Investment Market (AIM), and was involved in raising E1.3 billion in the first six months of 2006. However, McCarthy sees the Hawkpoint move as allowing the firm to become involved in M&A deals.
Citigroup
Citigroup has been in Ireland for over 40 years, but its stockbroking arm, Citigroup Global Markets, was established in 1999, to service the growing fund management industry in Dublin. Seamus Brady heads up the Dublin broking arm.
According to Sean Urie, vice president, equity sales trading with the firm, ‘Our local presence has helped us forge strong relationships across all geographic product lines’. The Dublin office acts ‘essentially as a distribution arm for the global product offering located in other research centres around the globe,’ says Urie, and Citigroup’s Dublin office provides access to senior management of global corporations, as well as to the banks’ research analysts.
Citigroup has a team of five sales staff in global equities, and two sales staff in pan-European bonds, working from the firm’s offices on North Wall Quay.
Within the equities portion, two work in pan-European equity sales, one works in pan-European equity sales trading, one in Asian equity sales, one in US equity sales, and one as a global events co-ordinator.
‘Citigroup Global Markets remains committed to providing a superior equity and bonds sales service to the Irish institutional investment community. Our global reach allows us to provide a broad, yet comprehensive service and we intend to continue leveraging this global knowledge for the benefit of our Dublin-based clients,’ says Urie.
ABN AMRO
ABN AMRO moved into the Irish stockbroking market through its acquisition of Riada Stockbrokers in the early 1990s. After sizeable expansion at the firm, which saw the firm perform exceptionally well in the 2000 FINANCE Stockbroking survey, winning nine categories, in 2001 the firm divested its private client and funds listings businesses, with the former team moving to Bloxhams, and the latter to Davy, as the firm focused on its core operations. Following this, the firm didn’t replace key departures such as chief economist Dan McLaughlin, who moved onto Bank of Ireland, and head of corporate finance Hugh McCutcheon, who moved to Davy, leading to a scaling back in its operations. Its research division was dis-banded soon after.
However, the firm is still committed to the Irish market, and still maintains a physical presence in the ABN AMRO building in Dublin’s docklands. Furthermore, the firm also operates a sales and trading function in Dublin. |
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