Davidson Asset Management targets growth through merger with Glasgow wealth firm

Glasgow-based investment firm Davidson Asset Management (DAM) has announced its merger with city neighbour Stewart Hastie Asset Management.

The tie-up now paves the way for the launch of its Davidson’s DAM Wealth Management service, taking the company into a new ambitious growth phase and will see the enlarged company manage over £200 million of funds and the launch of an enhanced range of services to clients.

DAM’s turnover has grown 30 per cent in the last year, exceeding £1 million for the year-end 31st May 2017 and the firm expects to see £1.5 million recorded in next 12 months.

David Hastie, previously managing director of Stewart Hastie AM, will operate under DAM’s new brand.

DAM, which also has an office in London, has been working with some of the biggest names in the hospitality and leisure sector for over 12 years, such as The Four Seasons Group, The Dorchester Hotel Collection, Radisson Blu, Malmaison, Hotel Du Vin, Village Hotels, and Corbin & King, offering corporate and personal advice from auto-enrolment, pensions and employee benefits to mortgage advice and wealth management.

Russell Davidson, DAM managing director, said; “We wanted to provide more specialised investment services for our clients as they become older, have larger funds under management and are looking specifically to plan for retirement in that 50 plus age group. As a result of the merger we are now going to offer dedicated lifetime and cash flow planning software which will allow these clients to plan in a more comprehensive manner. DAM will also launch its own risk graded portfolios which have a robust investment process behind fund manager selection and on going reviews for clients.”

He added: “DAM’s current business split is about 80% corporate, 20% private clients and David’s is the other way about, so we will both benefit from the expertise and specialist knowledge that each other has, pooling our resources in the most effective way. I initially worked under the Stewart Hastie ‘umbrella’ when I started out as an IFA in 2000 and left to develop a dedicated Corporate IFA, whilst David continued to develop his services. There is no doubt that there will be economies of scale in the merger however the fundamental driver was to deliver a better service to our clients, that we can only see growing in the next five to ten years.”

Mr Hastie added: “Stewart Hastie Asset Management has enjoyed a hugely successful partnership with Johnston Gray & Wardrop under Fitzroy Wealth Management for two years delivering a personal approach to our clients to protect and grow their wealth. As a result of the expansion of my corporate business, a national presence is now required with offices in London and Glasgow to deliver that level of corporate expertise and high quality financial advice. Russell will head up the Corporate side of Davidson Asset Management under DAM and my focus will be on the Personal Wealth Management Division, with us both being well placed in our specialist roles to deliver a high quality financial advice service to our expanded client list.”