MEMBER PROFILE
Andreas Utermann, ASIP
Global chief investment offi cer, RCM
INTERVIEW BY: MAHA KHAN PHILLIPS • PHOTOGRAPHY: ABI HARDWICK
ndreas Utermann looks remarkably relaxed colleague left the fi rm, and Utermann’s responsibilities
A
for a man who is running a $168 billion grew to include the European portfolios of UK pension
specialist equity shop during one of the funds. Subsequent to that, Mercury asked Utermann to
most turbulent times of the last decade. investigate the possibility of opening a German offi ce.
“We have built RCM into a culture with a Again, his background came in handy. “I suggested that
strong team who have personal integrity, we off ered a pan-European portfolio. I was the fi rst person
and we put clients fi rst. I’m hoping that the culture we’ve to run one, and it really caught on with clients. It really
set up here will help us through this crisis,” he says. helped me break through the fi rm.”
Th e comments are easy enough to dismiss as typical Utermann became head of the European team in 1997,
fund management rhetoric, until you realise that RCM and then global CIO when the fi rm was taken over by
isn’t exactly typical. Unlike many of its competitors, Merrill Lynch Investment Management and the
RCM’s bonus system is entirely discretionary. Th ere are no management team was restructured. Th en MLIM, hit by a
formula-driven bonuses, and no remuneration is driven by high profi le UK law suit and facing performance concerns,
individual or group profi ts. “My personal education was restructured again. “It became a very diff erent company
not centred on money, and neither was the place I spent suddenly, and I decided I wanted to take a break.”
the formulative years of my career at,” says Utermann.
It is ironic that Utermann, ranked as one of the 100 VALUE FOR MONEY
most infl uential people in European capital markets by After six months of travelling around the globe with his
Financial News, did not set out to be a fund manager. “I wife, also a portfolio manager, he joined RCM in 2002. “I
thought what I wanted to do was become a journalist, and have a very similar job to what I had at MLIM in the
so when I was at university I applied for a summer sense that we’re building up a global asset management
internship at the Financial Times. It was really interesting, company. It’s been an extraordinary six and a half years.”
and I thought that this was what I would do, but I had He believes it is time for an industry shake up. “Th e
also applied for an internship at SG Warburg to see what industry has not always provided value for money, and
that would be like. I learnt that investment management is there needs to be a concerted eff ort between the regulators
very much like journalism, in that it’s all about how to and industry leaders to try to establish a framework within
process information and turn it into something valuable.” which value for money for the investment public is
assured. A large proportion of people that invest their
SG WARBURG money, whether it’s in life insurance, savings, or bonds, are
Now a naturalised British citizen, the research helped not as fi nancial literate as we just assume they are.”
Utermann in his career when he subsequently joined SG Utermann describes his management style as
Warburg, which later became Mercury Asset Management. demanding, but fair-minded. “I’m transparent in my
“Th ey made an exception for me, so I was very lucky.” Th e decision-making, and I very much care about the
son of a German mother, raised in Brussels, with a father individuals I work with. So I would hope that people
who worked for the European Coal and Steel Community, would feel, whether or not they agreed with individual
(the forerunner to the European Community), it wasn’t decisions that I make, that I am trying to do the best for
surprising that Utermann decided to focus his research on them and for the company.”
the European Monetary Union. As if running a $168 billion portfolio wasn’t enough,
“Most people’s careers involve a bit of aptitude and an Utermann is also involved in politics. He was the chair
awful lot of luck, and I was at the right place at the right of the Hampstead Liberal Democrats for 10 years. He
time, on the European team pre-Maastricht in 1992.” has two young children, and loves skiing, playing
Originally an analyst, Utermann was very quickly given tennis, and surfi ng. “I’m also a keen stamp collector!”
a small cap portfolio to sink his teeth into. Th en a he points out.
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