Colin Wickens
Dragon Investment Managers
Raymond James gave us the tools we need to manage client assets without binding us to a specific advice model or compliance system, because we are a directly authorised firm. We do not know of an alternative for a firm of our size without giving up our identity. Being provided with a relationship manager as a main point of contact within the company also sounded like a key advantage for the transition period and beyond.
From the offset, Raymond James were thoroughly professional and highly organised enabling them to meet our needs as their customers. We were concerned about a slow start to the accumulation of funds under management due to covenants applied by former employers, but Raymond James did not start charging us until clients started signing up which was very helpful and appreciated. As we are not using any other platform provider, the positive start we had with Raymond James was vitally important to our working relationship.
The links to a relationship manager and the structure of support from the other teams in the business is very helpful and has surpassed our expectations. We were also very impressed by the initial help with IT and procedural arrangements including the client portal. The professional client literature is also a bonus; valuations, quarterly bulletins, market commentary and the budget newsletter being amongst the most valuable assets for us. The design and delivery of documents has always been fantastic.
When we have met clients occasionally in London, we have been afforded fantastic facilities at Raymond James’ Head Office; this level of support has been highly beneficial in terms of providing the best experience for our clients.
A key asset for us has been the opportunity to attend events with our peers where we can network and learn from each others’ experiences. The Raymond James Professional Development Forum has been an important part of our networking. In the first year of working with Raymond James one of our founders, Stephen Jones, attended and was impressed with the event and picked up some excellent ideas – the ‘Preferrals’ workshop being a highlight – and has been working with the corporate finance team who were introduced at that event.
The following year we sent two delegates, and Stephen has attended the Raymond James Professional Development Forum every year since joining Raymond James. This event brings us up to speed with industry best practice, current issues, compliance, IT and service offerings as well as the
positioning of respected fund managers all in a two-day gathering.
Our funds under management approached £60 million in less than two years. We have three long term targets:
1. £100m by our own development as things stand;
2. £250m possibly with some local acquisitions;
3. £1bn possibly after teaming up with another firm.
We want to be the first choice for discretionary fund management for Wales. We are very pleased with the correlation between our expectations on funds under management and income and the projections we made before starting. We put a lot of work into the business plan and that has really paid dividends, as we knew exactly where we wanted to be and what the desired environment was. We have had a positive working relationship with Raymond James. If we knew then what we know now we would have had made the decision four years earlier!
Black MondayOn 19 October 1987, the stock markets experienced a dramatic plunge that prompted many firms to shut down their trading desks and turn off their phones to minimize internal losses. Raymond James refused to do the same. Our desks stayed open to help meet clients’ needs, resulting in our first and only unprofitable quarter since the firm went public in 1983. |
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Who was Raymond James?The Raymond in our name is actually from Edward Raymond, owner of a 15-employee mutual fund sales group, Raymond and Associates, along Florida’s west coast. He sold his company to Bob James on 15 July 1964, on condition that the surviving firm be called Raymond, James & Associates. Three days after the sale, Ed Raymond was involved in a near-fatal automobile accident and never joined the firm. Nonetheless, even after Raymond had passed away, Bob James insisted that his name remain on the door – ahead of James’ own. That was a promise he made to Ed Raymond three days before the accident, and Bob James was a man who kept his promises. |
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Bear Market of 1974The severe bear market of 1974 threatened the existence of Raymond James, which was bleeding capital by the day. Tom James, his father and other leaders took extreme measures to keep the firm afloat, slashing costs, foregoing paychecks and even attempting to sell the firm for just enough capital to protect client assets and retain as many associates as possible. The story could have ended very differently if not for a sharp upturn and continued rebound in the stock markets late in the year. |
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Taking Raymond James PublicWhen consideration was being given to taking Raymond James public, Tom James penned a letter to shareholders (largely employees at the time). ” … the public offering should be considered as a statement of our independence. While this is a psychological rather than an economic rationale, it is nonetheless very important. We have asserted for some time that we are not interested in becoming a small part of a very large corporation. That assertion results mainly from the inclinations of management rather than the economic benefits associated with either alternative. The public stock offering affords us the opportunity to enjoy a little bit of the best of both worlds. While shareholders will be given liquidity at fair market value, we will still have the ability to control our own destiny.” After 40+ years of Tom’s leadership, upon becoming CEO, Paul Reilly was often questioned about whether the company might ultimately surrender its cherished independence and be acquired by some larger entity. His response: “Not while I’m around.” It’s a theme that continues today. |
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