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Seven Reasons for the Rise of Retailer Zara

The company Inditex may not be a well-known name outside Spain, but its flagship brand Zara certainly is. It is famous for selling fashionable clothing. So what are the secrets behind its success and why does Robeco Global Consumer Trends Equities invest in it? Interview with Portfolio Manager Jack Neele.

Inditex is a Spanish clothing retailer, which operates worldwide. Besides its main brand Zara it operates stores like Pull&Bear, Massimo Dutti and Bershka. The company is based in the coastal city of La Coruña in the northwestern province of Galicia. The founder and CEO of the company, Amancio Ortega Gaona, has a large stake in the company and has become one of the richest people in the world. Although Spain is still struggling economically, Inditex is doing well. Zara clothing is cheaper in their home market and the pain is compensated by successful expansion abroad.

Inditex is a very Spanish company despite its growth in international operations. Lots of clothing is still manufactured in the region of Galicia. “Inditex is a specific Spanish company. That’s where their roots are. Many Spanish people are proud of it, like the Dutch are of Heineken,” says Jack Neele, portfolio manager for Robeco Global Consumer Trends Equities.

Fits in well with philosophy of Global Consumer Trends Equities

Inditex fits in well with the investment philosophy of Global Consumer Trends Equities, says Neele. “We are looking for structural winners and have a preference for companies with strong consumer brands. The defensive Inditex stock provides good diversification with other more growth-oriented stocks in our portfolio.”

Inditex represents around 2% of the total portfolio, which is just outside the top ten holdings of Global Consumer Trends Equities. “The reason it doesn’t have a higher ranking in the portfolio holdings is that the stock is no longer cheap. Because of its strong track record, valuation has risen and the price-earnings ratio is in the low 20s.” He gives seven reasons why the company has been so successful.

(1) Low risk of fashion mistakes

The risk of making fashion mistakes by stocking clothing that customers do not want to buy is small, says Neele. “If you have only a limited number of ranges, then the impact of a fashion mistake is immense. You end up with large write-downs on unsold stock. But for Inditex, fashion risk is very low, because the stock levels of goods in transit are lower. It will just take a few days longer to sell this stock. You do not end up with a huge leftover winter range that you need to sell over the spring period.”

Having factories and suppliers close to their markets allows Inditex to react quickly to any change in consumer buying patterns. However, labor costs are higher than in Asia. “Inditex has production facilities in Spain, Portugal, North Africa and Turkey, which are close to their end market in Europe,” he says.

(2) Always something new

The Zara brand offers many different collections each year that attract increasing numbers of people to the store, says Neele. “The consumer knows that every three weeks there will be something new to discover in the Zara store.” This short cycle is due to the extremely short lead times for design, production and distribution, a concept sometimes referred to as ‘fast fashion’.

In contrast, competitors basically have one collection each season, he adds. “For example, it is difficult for H&M (Hennes and Mauritz) to have more than one collection each year, because their lead time for distribution is much longer. The reason is that H&M procures mainly in faraway Asia. This is a cheaper part of the world in which to produce, but shipping time to the market in Europe is far longer.”

(3) Easier to react to local consumer tastes

The company can easily cater to local consumer tastes, says Neele. “Store managers have a big influence on what is sold. For example, if a certain type of jeans becomes popular in Rotterdam, then the manager can easily receive more because of short lead times. But if you order additional jeans produced in Asia, then these can be out of stock for a considerable period of time.”

(4) Edge on the competition

Inditex is better positioned than its competitors, which allows the company to gain market share, says Neele. “H&M is one of the best companies in the industry, but Inditex is better. Zara sells fashionable clothing at attractive prices. H&M and its rival, Primark, offer lower prices, but have a more basic clothing line, because selling fashionable clothing can be risky: what is in fashion today can quickly be out of fashion tomorrow.”

There are other major competitors. Mango, their Barcelona-based rival, is a successful brand and a big competitor in their home market. But it is not in the same league, he says. “Mango is expanding abroad, but it still lacks the global scale of Inditex.”

(5) Low risk associated with international expansion
Inditex has substantial growth potential in the countries where the company is already represented, says Neele. Entering markets in new countries is the riskiest part in the growth strategy of any major company. “Inditex doesn’t need to do that because they already have a presence in many countries, with relatively few stores.” Its Zara brand has just over 2,000 stores in 88 countries, while H&M has 3,300 stores in 54 countries.

Markets outside Spain should provide more growth, he says. “Future growth will come mainly from the emerging markets and, to a lesser extent, the rest of Europe.”

(6) Online shopping is helping Inditex to grow quickly

While the company was slow in starting up online shopping, it is now rapidly rolling out the concept internationally. They started out in their top six countries three years ago and are steadily increasing their presence. Neele explains how the concept works. “You can order online and pick up the clothing at the store or have it sent to your home.”

He adds: “To return items, you need to go to the physical stores or return items by mail and pay for postage. This is an effective policy, because it creates a barrier to returning goods. It differs from online retailers like Zalando, where some customers order six pairs of shoes, try them all on, keep one pair and return five,” he adds. “This shopping behavior is very expensive for online retailers.”
Online shopping is especially useful for countries where Inditex has only a small presence. “With online shopping, everyone can buy at Zara even though there isn’t a store nearby,” he says.

(7) Innovative promotion of the brand

Inditex spends very little money on advertising, says Neele. “The stores promote the brand. There aren’t any Zara billboards or commercials around. Instead, Inditex promotes its brand by buying prime real-estate locations and creating stores with an air of luxury.”

Inditex recently bought a building for over USD 300 million on Fifth Avenue in New York to open a Zara store. “This might sound like a crazy amount of money, but it is a pretty smart move. This store functions as a giant billboard for the city’s 50 million annual visitors. Store visitors talk about it to others, and this helps generate worldwide interest in the Zara brand.”

* This publication is intended to provide investors with general information on Robeco’s specific capabilities, but does not constitute a recommendation or an advice to buy or sell certain securities or investment products.

Peter Charrington Named Global Head of Citi Private Bank

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Citigroup announced this week that Peter Charrington has been named Global Head of Citi Private Bank. Mr. Charrington succeeds Mark Mason who was recently named Chief Financial Officer for Citi’s Institutional Clients Group.

“In his 20 years at Citi, Peter has helped build the Citi Private Bank brand, significantly increasing assets under management by working to strengthen client relationships and enhance our product offering and servicing capabilities. The Private Bank is an integral part of Citi and we are committed to continue investing in and growing the business,” said Jamie Forese, Co-President of Citi and Head of the Institutional Clients Group. “The complementary relationship between the Private Bank and other businesses within the Institutional Clients Group allows us to deliver the same sophisticated advice and product to our private bank clients that is normally reserved for the world’s largest companies and investors. This creates an extraordinary advantage for our clients,” he continued.

Citi Private Bank advises the world’s wealthiest, most influential individuals and families. With $310 billion in global assets under management, the franchise includes 50 offices in 15 countries, serving clients across 139 countries. The firm offers clients products and services covering capital markets, managed investments, portfolio management, trust and estate planning, investment finance, banking and art, aircraft and sports advisory and finance.

Mr. Charrington began his career at Citi Private Bank in 1994. He was a private banker in the United Kingdom and also held roles in structured lending and real estate. He later ran the Private Bank in the UK, Greece, Israel and Monaco. Following Citi’s sale of the Smith Barney brokerage business in 2009, the Private Bank shifted its focus to ultra high net worth clients with at least $25 million in net worth, and Mr. Charrington was named CEO for North America, the largest region by revenues and assets under management.

“Having spent my entire career in the Private Bank, working across Europe and most recently as CEO in North America, I am honored and humbled to accept the role of Global Head of Citi Private Bank,” said Charrington. “We have an incredible group of talented individuals around the world delivering the highest quality wealth management services for the worlds most sophisticated ultra high net worth and law firm group clients. Our ability to seamlessly deploy the global resources of the Citi franchise, with a presence in 160 countries spanning every asset class market and product, brings unparalleled value to families with complex investment, estate and succession planning needs.”

In 2013 Citi Private Bank received awards for Best Private Bank for Customer Service from The Financial Times, The Banker and Professional Wealth Management Global Private Banking Awards for the second year in a row, and Outstanding Private Bank for UHNW Individuals from Private Banker International’s Global Wealth Awards, among numerous other awards.

Ana Botín, Unanimously Appointed to Chair the Board of Banco Santander

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The board of directors of Banco Santander unanimously agreed to appoint Ana Botín as its chair. The appointment was made at the proposal of the appointments and remuneration committee, which held a meeting this morning.

Fernando de Asúa, 1st vice chairman of Banco Santander and chairman of the appointments and remuneration committee, expressed “the deep sorrow for the loss of chairman” and said: “Emilio Botín was extremely important for the bank, leading its extraordinary transformation, turning it into the leading bank in the Euro zone and one of the most relevant in the world, and for Spain.” His words were supported by all of the board’s members.

The appointments and remuneration committee considered Ana Botín is “the most appropriate person, given her personal and professional qualities, experience, track record in the Group and her unanimous recognition both in Spain and internationally.”

After the board’s meeting, Ana Botín said: “In these difficult times for me and my family, I appreciate the trust of the board of directors and I am fully committed to my new responsibilities. I have been working at Grupo Santander in different countries and with different responsibilities for many years and I have experienced the professionalism and dedication of our teams. We’ll continue to dedicate all our efforts with total determination to keep building a better bank for our customers, employees and shareholders.”

Capital Strategies Seeking Talent in Frontier Fixed Income, Micro-Finance, Absolute Return

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Back in 2000 in Madrid, Credit Suisse’s Daniel Rubio and Gregory Ratliff had an idea. At the peak of the financial services industry fortune, they decided to found a company that would act as a deal breaker on behalf of asset management companies who wanted to increase or build from scratch their presence in a new market.

The company was called Capital Strategies Partners and set two main objectives to itself: to represent asset management companies in new markets and to take care of fund distribution through private banks and intermediaries. In 2008, the company registered as an asset management company on the Comision Nacional del Mercado de Valores (CNMV) and was regulated according to the Mifid legislation.

At first, the aim of the company was to give exposure to the Iberian market to some small but valuable boutiques that didn’t have a presence there. Today, it has some €4bn AUM mainly in Southern Europe and Latin America and has spread its presence globally from Spain to Portugal, Italy, Germany, Switzerland, Peru’, Colombia, Brazil and Chile.

Riccardo Milan (pictured), one of the member of the management committee, who is currently in charge of the Lugano’s office, in an interview to InvestmentEurope describes the business as similar to that of a capital introducer in the UK. “However, I’d say what we do is not entirely the same. Our business model is a ‘warmer’ type compared to a ‘cooler’ approach in the UK, which suits southern countries better”.

“For this reason, we continue to work closely with investors once we have introduced them in the new market, therefore I’d say that we are more similar to a third party marketer,” he says.

To explain his job better, Milan says that he sees no substantial difference between what he does and what a salesman from any other asset management companies does internally, if not that he remains with the managers and that he is paid on the basis of business success. “It’s also worth highlighting that, unlike for a salesman from any other big fund house, asset turnover is detrimental to my job,” he adds.

As Milan also explains, Capital Strategies has several boutique each of them specialized in single asset classes, which get selected on the back of a screening analysis that tries to identify the ones that are most likely to deliver best returns in the following three to five years with lowest risk in terms of volatility and maximum drawdown.

Frontier fixed income on the radar

In the search for valuable asset classes, Capital Strategies aims at covering those niche ones that have not filled competitors’ portfolios yet. While the whole fixed income space, mainly meant as credit, is covered, Milan says that the next growth for CSP will be in frontier fixed income, asset class they actually cover through the Danish boutique Global Evolution.

Milan also explains that Capital Strategies Partners does not take any retain fees from the companies they are working with and they work exclusively on a success fee basis avoiding any conflict of interest.

Looking at the client basis, Capital Strategies has so far exclusively worked with institutional clients (both wholesale and pure institutional) and only in the last 12 to 18 months they have been looking to enter the retail distribution business predominantly in Iberia and Italy.

Of the whole institutional side, in Europe 25% of the clients are pure institutional and 75% in wholesale space. While Southern Europe is the most profitable area to date for the business, LatAm (headed by Nicolas Lasarte who joined as third partner in 2005) is an increasingly important region for the company, especially within the pension fund business. With an office in Lima, Capital Strategies focus in pure institutional markets in Peru, Chile, Colombia and Brazil.

Looking ahead to the future, Milan says that, apart from frontier fixed income, micro-finance and absolute return are on Capital Strategies’ top list. “Micro-finance is currently quite attractive to us, as in general we are on the hunt for very low correlation and stable interesting return,” he explains.

Besides that, Milan says that Capital Strategies is always open to evaluate new fund managers as long as they add value to its current offer. “We don’t want to be a fund supermarket,” he concludes.

This interview was published originally by InvestmentEurope, on September 2, 2014.

MFS Promotes Michael Roberge to Co-Chief Executive Officer

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MFS Investment Management announced that Michael Roberge, MFS President and Chief Investment Officer, has been promoted to Co-CEO, effective January 1, 2015. Roberge will share management responsibilities with Robert Manning, MFS Chairman and Chief Executive Officer since 2004. Roberge will also continue to serve as Chief Investment Officer for MFS.

Appointing Co-Chief Executive Officers will allow MFS to build out its leadership team and give Manning the opportunity to focus on the firm’s overall strategic direction, working closely with MFS’ clients and intermediaries around the world.

“In his 18 years with the firm, Mike has proven himself to be an exceptional leader and a talented investor. As Co-Chief Executive Officer, Mike will play a critical role in both guiding our investment team and managing our ongoing global expansion,” said Manning.

MFS has experienced global growth in recent years. Assets domiciled outside of the US today account for more than one-third of MFS’ assets under management.

“At MFS, we take a long-term approach, in both our investment and business strategies,” said Roberge. “Our clients will always come first. We have to ensure that we can continue to meet their needs and expectations in every place we do business.”

Roberge joined MFS in 1996 in the fixed income department. During his career at MFS, he has served as a credit analyst, portfolio manager, research director, Chief of Fixed Income, and Chief US Investment Officer, before being promoted to President and CIO in January 2010.

In order to allow Roberge to focus on his new leadership role, MFS will transition some of his investment oversight responsibilities to two new group CIOs. Kevin Beatty, Director of Equity, North America, will be promoted to Chief Investment Officer, Global Equity, and William (Bill) Adams, MFS Director of Fixed Income will be promoted to Chief Investment Officer, Global Fixed Income. Both Beatty and Adams will report to Roberge.

“Kevin and Bill have played an integral role in our long-term investment success,” said Roberge. “They are highly respected by their peers on the investment team and I have every confidence that they will be tremendously successful in their new roles.”

Adams joined MFS in 1997 as a corporate credit analyst. He took on portfolio management responsibilities in 2000. In 2009, Adams was appointed Director of Corporate Credit Research before being promoted to Director of Fixed Income in 2011.

Beatty joined MFS in 2002 as an equity research analyst and was named portfolio manager in 2004. Prior to assuming the role of Director of Equity, North America, in 2011, he served as Director of US Research beginning in 2007.

Lazard Asset Management Launches Two Open-End Mutual Funds

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Foto: Nguyen, Flickr, Creative Commons. El espejismo del “flash crash” de agosto

Lazard Asset Management (LAM) has announced the launch of two open-end equity funds domiciled in the U.S., expanding LAM’s international and global fund offerings. Both funds seek capital appreciation through distinct investment approaches.

The Lazard International Equity Concentrated Portfolio is a multi-capitalization, concentrated international equity portfolio. It invests in non-US companies judged by the investment team to have sustainably high or improving returns at attractive valuations.

“This portfolio seeks to leverage the richest insights of LAM’s International Equity analysts,” commented John Reinsberg, Deputy Chairman, International and Global Strategies. “It distills the intellectual capital of a $30 billion international equity platform into a twenty-to-thirty-stock portfolio.”

The investment team comprises portfolio manager/analysts Kevin Matthews, Michael Bennett, Michael Fry, and Michael Powers, as well as Mr. Reinsberg. On average, each team member has 26 years of industry experience, more than half of which has been with LAM.

LAM’s second new fund, Lazard Global Strategic Equity Portfolio, invests around the world and across the market capitalization spectrum. This portfolio is designed to participate in rising markets and its focus on valuations and financial productivity is intended to protect capital in declining markets. Like the Lazard International Equity Concentrated Portfolio, it focuses on stocks with attractive valuations and sustainably high or improving financial returns.

“This global unconstrained equity offering is an extension of our successful International Strategic Equity offering,” Mr. Reinsberg added.

The investment team consists of portfolio manager/analysts Robin Jones, Mark Little, and Barnaby Wilson, as well as Mr. Reinsberg. On average, each team member has 21 years of industry experience, with 15 of those years spent with LAM.

Deutsche Bank Appoints Andrés de Goyeneche as Chief Country Officer of Chile

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Andrés de Goyeneche es nombrado Chief Country Officer de Deutsche Bank en Chile — Santiago de Chile. Photo: aloboslife, Flickr, Creative Commons. Deutsche Bank Appoints Andrés de Goyeneche as Chief Country Officer of Chile

Deutsche Bank has announced that Andrés de Goyeneche has been appointed Chief Country Officer (CCO) of Deutsche Bank in Chile, effective immediately. De Goyeneche joined the Bank in 2000 and will continue to serve in his current roles as Chief Executive Officer, Deutsche Bank Chile S.A. and Head of Capital Markets and Treasury Solutions for Chile.

As CCO of Chile, De Goyeneche will lead Deutsche Bank in the country across all business divisions, and join the Latin America Regional Executive Committee. He will continue to be based in Santiago and report to Bernardo Parnes, Chief Executive Officer of Deutsche Bank Latin America, and Alberto Ardura, Head of Capital Markets and Treasury Solutions, Latin America.

“Chile is an important component of our Latin America strategy and we will continue to expand our client offerings in the country,” said Parnes. “Andrés has been instrumental in the growth of our business in Chile and we believe his tenure at the bank and deep knowledge of the local market will continue to serve us well.”

“Andrés’ deep experience and insight into the Chilean market have always been highly valued by our clients,” said Ardura. “We are confident that he will thrive in his expanded role.”

Deutsche Bank has had a presence in Chile since 1954.

Consumers in Emerging Markets: Identifying the Consumer Staples Companies Poised to Benefit

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Morningstar has published its latest Consumer Observer research report, this time exploring the growth potential of consumer staples companies with exposure to emerging markets. In its report, “Investing in the Emerging Market Consumer—Why Companies with Moats are Poised for Outsized Returns,” Morningstar equity analysts found that companies with economic moats, or sustainable competitive advantages—more specifically, companies with brand portfolios across multiple pricing tiers and expansive distribution networks—are best positioned to monetize consumer demand in emerging markets.

Morningstar analysts identified the following consumer staples companies as poised to benefit from positive growth trends in emerging markets: Ambev, Coca-Cola, Diageo, ITC, Philip Morris International, Unilever, United Breweries, Wuliangye Yibin, and Yum Brands.

“Population growth, private investment, and urbanization are all conducive to creating wealth in emerging markets. Disposable income gradually increases over time as consumers shift from rural to urban settings and trade agricultural jobs for positions in the manufacturing, service, and technology industries. Companies with recognizable brands available at multiple price points will have the most success reaching a larger pool of customers,” R.J. Hottovy, Morningstar’s consumer equity strategist, said.

“Expanding the consumer base will also require significant infrastructure upgrades in emerging markets. Regulatory and geopolitical considerations will play a large role in foreign direct investment as each country looks to strike a balance between protecting local companies and encouraging foreign investment. We think larger multinational corporations have the balance sheets and access to capital to absorb the effect of new legislation.”

In the report, Morningstar equity analysts evaluated five emerging-markets regions: China, India, Latin America, Central and Eastern Europe, and Africa. Analysts reviewed demographic trends, including population growth; driving factors of wealth creation, such as urbanization and private investment; the structure of local consumer industries; and regulatory and geopolitical concerns. Morningstar also analyzed the infrastructure needs of each emerging-markets region, as well as the strategies that consumer staples companies deploy when looking to enter or expand in a given region.

Key takeaways of the report include:

Favorable demographic and urbanization trends will be fundamental longer-term consumption drivers in China. Additional catalysts include the growth of China’s middle class, expanded Internet and broadband adoption, and government policy changes.
India is poised to see continued population growth of approximately 1 percent annually as the working-age populace also grows as a percentage of the total population, while regulatory issues and foreign direct investment restrictions remain headwinds to the success of some global consumer staples companies.
The Latin American market is attractive for consumer staples companies, as population, per capita incomes, and urbanization rates are all expected to grow. Meanwhile, inflationary pressures and relatively poor infrastructure continue to present disadvantages to consumer staples companies looking to enter the market.
Some countries in Central and Eastern Europe are the most mature of the emerging-market regions evaluated in the report, because of the region’s transition to free markets, highly educated workforce, and relative economic stability. However, an aging population and lacking infrastructure will hamper opportunities for consumer staples companies.
Africa will become an increasingly strategic region for consumer staples companies over the next several years, driven by its large, young, and rapidly growing population; increasingly favorable regulatory reform; and urbanization and the resulting wealth creation among consumers in Africa. Angola, Ethiopia, Kenya, and Nigeria are key burgeoning Africa markets, in addition to South Africa.

Top-Down and Bottom-Up Forces are Driving Dramatic Changes Within the Wealth Management Industry

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The convergence of top-down forces (increased regulation) and bottom-up forces (changes in consumer behavior) is driving dramatic and rapid changes within the wealth management industry.

According to Sergio Alvarez Mena III, member of the Florida International Bankers Association (FIBA)’s Wealth Management Forum Advisory Committee and Director at Credit Suisse Securities (USA): “The speed and depth of transformation has created unique challenges for the industry. In order to navigate these developments, we must remain cognizant of the impacts in order to manage the changes for our clients.”

Alvarez-Mena points to the regulatory environment as having the most significant “top-down” impact on wealth management. “Largely as a result of the financial crisis of 2007/2008, we are experiencing not just increased enforcement of existing regulations, but new regulations,” he says.

Some industry reshaping has already occurred as a result of the escalating costs of complying with new laws such as FATCA and BASEL III. “The general notion of de-risking, inherent in these new regulations, is causing segmentation of the marketplace,” states Mena. “There are significant implications that the industry has to clarify.”

“Miami is a classic example, with a lot of consolidating and shifting of core business models by the players here. The industry we see today is changing so radically that in five to ten years, it will look very different.” Alvarez-Mena will be a speaker at the upcoming FIBA Wealth Management Forum 2014 of which he said“This is a rare opportunity to hear what industry leaders are doing and thinking in a non-promotional setting.”

In addition to increased regulation, today’s wealth managers are also confronted with “bottom-up” changes, most importantly the proliferation of huge amounts of data, and variations in how clients deal with their money.

The upcoming FIBA Wealth Management Forum 2014, presents an important platform for gaining industry –expert knowledge and sharing industry best practices. Alvarez-Mena, who also serves on FIBA’s Board of Directors, views FIBA as the premier Latin American cross- border financial services industry organization, “nowhere is there the amount of talent conducting global business on the highest level than the broader FIBA constituency.”

“Our clients are aware of the new trends, but rely on us as wealth management professionals to advise on the changes. Platforms such as the FIBA conferences ensure we stay updated on what is most dynamic about our industry,” says Alvarez-Mena.

The Florida International Bankers Association (FIBA) Wealth Management Forum 2014 at Miami’s JW Marriott Marquis Hotel on September 15-16 will give industry professionals the competitive edge needed to navigate transition and fundamental change.

For more information, or to register, visit http://www.fibawealthmanagement.com .

deVere Group Launches in San Francisco as Part of U.S. Expansion

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One of the world’s largest independent financial advisory organizations is opening its first office on the U.S. west coast. deVere Group’s base in San Francisco is an integral part of the company’s ambitious expansion plans for the North American market. The San Francisco operation, which is located in the city’s prestigious Market Street, will be headed by Adrian Flambard.

The organization, which has 70 offices globally, more than 80,000 clients and $10bn under advice, launched its U.S. hub office in New York in June 2012. It also has a presence in Miami’s Brickell financial district.

Nigel Green, the deVere Group founder and CEO, comments: “We’re delighted to announce the opening of the San Francisco office, which is an integral part of deVere Group’s strategic push further into the North American market.

“We are committed to developing our already established presence in the U.S. and expanding into Canada over the next two years in order to meet the ongoing demand for our financial services from U.S. and Canadian citizens, international investors and expatriates.

“This soaring demand is being fuelled by a growing financial awareness and savviness in America since 2008 – people know more than ever that they need professional advice to maximise and safeguard their wealth – and because an ‘advice gap’ has been created in recent years due to many advisory firms exiting the market. We believe that our American offices have the potential to be the organisation’s most successful. He adds: “What happens in the U.S. marketplace is often a good indicator of where the wider financial services industry is headed in terms of trends, regulation and business practices. As such, we will continue to carefully analyse our expansion process here to see how our business models in other markets in which we operate might evolve.”

Senior Area Manager of deVere USA Inc, Benjamin Alderson, says: “deVere USA, which is regulated by the Securities and Exchange Commission, already has a significant number of San Francisco-based clients, and due to its major financial hub status, and its high population of high net worth U.S citizens, globally-minded investors and expatriates, San Francisco was a natural choice for the next stage of our North American growth strategy.

The team

The San Francisco operation, which is located in the city’s prestigious Market Street, will be headed by Adrian Flambard, who has relocated from deVere Group’s New York City office.

Mr Flambard, who started his career as a chartered tax advisor with PriceWaterhouseCoopers and is a well-known, experienced advisor in the international advisory sector, says: “This is a fantastic opportunity to be further involved with a robust global expansion within a dynamic, sophisticated market in which there is an obvious need for our services. These are exciting times for deVere Group.

“We are looking to extend the enviable reputation that deVere has in other regions of the world for delivering a world-class, results-driven service to its clients. We’re looking forward to becoming the San Francisco area’s most trusted advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.”

There is currently a team of five in the San Francisco office with the number of advisors expected to reach 15 within six months.