Advisers continue to lose faith in Credit Suisse

Smith & Pinching recommends move out of successful European Frontiers as it believes group will struggle to keep manager Elizabeth Eaton

Smith & Pinching is the latest advisory firm to pull out of Credit Suisse funds, claiming a loss of confidence in the asset management side of the business.

The firm, now known as OPM Fund Management, is advising clients to withdraw money from the group's European Frontiers fund despite a healthy track record, as it feels Credit Suisse is not doing enough to retain personnel.

Alan Rutledge, director on the discretionary and IFA side of the business at Smith & Pinching, said: "We took the view we are not comfortable with what the group is doing and asked ourselves whether we should continue investing. Credit Suisse does not appear to be fixing anything and this is not doing much for overall confidence in the group."

Chelsea Financial Services still recommends European Frontiers on its wider buy list but Hargreaves Lansdown, Bestinvest, Whitechurch and several fund of funds managers will no longer hold Credit Suisse products until changes are made.

Many pulled out of the Income fund after holding it for several years when Bill Mott stepped down from full-time management in 2003. The fund's assets have dropped by a further £195m since October 2006 when Mott finally left the firm to start up Psigma with Ian Chimes and launch a new income vehicle.

Over the past 18 months, the group has lost numerous other managers, including Leigh Harrison, Errol Francis and multi-manager heads Gary Potter and Robert Burdett, as well as Chimes and sales director Mark Thomas.

Mark Burgess, former vice chariman and head of EMEA asset management has also departed oin recent months.

In general, advisers said the group has few appealing single manager products left and many question how long remaining talent like European Frontiers' Elizabeth Eaton will stay.

Meera Patel, investment manager at Hargreaves Lansdown, said they lost confidence in Credit Suisse some time ago and the group would need to sign high-profile names and keep existing staff to get back onto the radar.

"People have been leaving left, right and centre so we question whether the whole culture has changed," she added.

"Individuals like to be valued and its not good if top-level management does not appreciate you.

"One big name may not solve the problem but Credit Suisse needs to reassure IFAs that it is taking steps to incentivise the remaining managers."

In the group's defence, Wesley McDade, head of corporate communications for asset management at Credit Suisse, said: "We are actively working with advisers to communicate our plans and strategy for building our asset management business globally and in the UK.

"Graham Duce and Aidan Kearney have been travelling extensively around the UK to meet with advisers about the multi-manager business, and members of our sales and management team have been outlining our overall plans and the new hires we have made."

He pointed to several recent hires including Gary Withers as head of business for EMEA, Paul Griffiths as head of fixed Income, Raphael Kassin as head of emerging markets debt, Kearney and Duce as co-heads of our multi-manager business, and Marcus Hankey, Vipin Ahuja and Justin Jordan on the fund manager side.

"These new hires are a clear indication of our commitment to ensuring we have the right talent in place in order to provide clients with innovative investment solutions and superior investment performance," added McDade.