Big changes at Seamark

Seamark Asset Management has undergone a major shake-up of its executive team, with a series of new appointments, several job cuts and the sudden resignation of one of its vice-presidents. The changes come less than six months after ClaringtonFunds shifted the bulk of their fund management away from Seamark to Industrial Alliance.

In 2005, ClairingtonFunds made up approximately 21% of Seamark’s revenues. The loss of that block of business was a blow to Seamark. The magnitude of loss became apparent in May when Seamark decided to cut its regular quarterly dividend by more than half, to $0.07 from $0.20.

The news out of Seamark began with the appointment of Thomas MacLaren as chief investment officer, a step up from his most recent position as executive vice-president and member of the executive portfolio team at Seamark..

“With [Stuart Rafus’] appointment as president and CEO four months ago, and his selection of Tom as CIO, we now have the stability and focus we require in these senior management roles,” said G. Peter Marshall, who will give up his position as CIO and resume his previous role as Seamark’s non-executive chairman.

According to a release, the organizational changes at the Halifax-based company are “designed to revitalize the firm’s focus on investment performance and client service.” The changes include portfolio management and client service responsibilities, which will include the elimination of some roles and the addition of new positions and employees.

Over the past four months, the company eliminated a number of people through attrition and termination. Seamark currently employs 34 people, including all of the new hires recently announced, down from 42 at the beginning of the year.

Brent Barrie, Seamark’s vice-president and corporate secretary, says the main reason for the shuffle is part of the new CEO’s plan to re-organize the company to better meet client needs. But, he adds, “the loss of Clarington has eliminated the need for certain positions that were directly related to the support of those accounts.”

In the midst of the organizational changes, Seamark appears to have been caught off-guard with the sudden resignation of George Loughery, the firm’s vice-president of equities. Seamark made the announcement in a brief release on Wednesday, less than 10 hours after the firm indicated in another release that Loughery was expected to remain a part of Seamarks’ executive portfolio management team.

Barrie was unwilling to expand on Loughery’s departure or say whether his decision was tied to the management changes. Barrie would only say, “you can draw your own inference around the timing.”

Jeff Rudderham, Jonathan Norwood, and Scott Ellison will join Seamark after the acquisition of their privately held company, Rudderham Norwood Ellison Investment Counsel, which closed earlier this week. The newly acquired firm will be responsible for client relations, investment management, and investment counselling.

Founded just last year, Rudderham Norwood Ellison had $30 million in assets under administration in 2005.

Also joining Seamark are Angela Eaton, who will serve as senior vice-president and portfolio manager, and Darren Kosack, who will be the firm’s senior vice-president responsible for institutional and retail sales and marketing. Eaton has more than 20 years of experience, including working for Manulife Financial and Trimark Investments. Kosack, meanwhile, has 15 years of experience, most recently with Skylon Advisors. He will be charged with developing an enhanced client relationship model.

The changes didn’t stop there. Richard Fewell, vice-president responsible for mutual funds and managed accounts, and Donald Wishart, chief portfolio manager, have both been promoted to Seamark’s executive portfolio management team, which will be led by MacLaren. Eaton will also join the team to bring the membership of executive portfolio management team to four. The executive portfolio management team was expected to grow to five members before Loughery’s sudden resignation.

As well as the executive changes, Seamark has added William Eeuwes, vice-president and head of Manulife Capital, the private equity business of Manulife Financial, to its board. As of the end of March, the Manufacturers Life Insurance Company, the parent company of Manulife Financial, owned 34.3% of Seamark.

Eeuwes’s appointment comes about four months after Purdy Crawford’s retirement from the board.

Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com

(08/02/06)