The client battle: the value of a large regional sales force

In an increasingly crowded marketplace the battle for new business is fiercer than ever.

In this tough environment many wealth managers are ramping up regional business development teams to draw new clients across the country.

But just how valuable are business development managers in building relationships with the key adviser market?

Guy Hudson, director and head of client services at Heartwood, said business development staff are of ‘fundamental importance’ to a wealth firm. Heartwood has nine client directors working to bring in new clients.

These include Hugh Tottenham, who was hired from GAM four years ago to target the professional market, and Mark Rockliffe, who was brought in last June to build relationships with IFAs – an area Heartwood expects to grow and where another member of staff will likely be added.

The firm is expecting to appoint two more client directors this year. It says the value in a large and growing team is getting professionals to target niches and allowing investment managers to stick to what they are good at, namely investing.

No blurring of the line

‘We find it works extremely powerfully so we don’t get this blurring of the line of generalists who are responsible at once for delivering a service to clients and also taking investment decisions,’ Hudson said. ‘From the standpoint of the clarity of our business model that is very important.

‘We are quite careful to make sure we understand where the market is positioned, and that can be quite channel-specific. Depending on what role you want to play [with potential business] there can be some quite big variations.’

The strategy is shared to a degree by Berry Asset Management, which is also targeting the adviser market ahead of the retail distribution review through partnering with wrap platforms and building a regional sales force.