Is SWIP losing out to Scottish boutiques?

Before it has managed to find a replacement for its chief investment officer for equities, Scottish Widows Investment Partnership has lost two more senior staff to an Edinburgh based boutique.

Martin Currie has poached Kim Catechis as head of global emerging market equities from SWIP where he held the same position. Alistair Reynolds, an investment director in the emerging markets team also moves with him.

This is another blow for SWIP, which lost Graham Wood, its chief investment officer for equities, to local boutique Edinburgh Partners in September last year. It has yet to name a replacement. Robert Waugh, UK head of equities at the firm, also left in the same month.

SWIP also lost its global director of credit, Rod Davidson, and three of his investment team to Alliance Trust in August 2009.

While the latter can't be described as boutique, both Martin Currie and Edinburgh Partners are relatively small companies. Particularly in comparison with SWIP, which saw its assets under management swell by 50bn from October to March as it inherited funds from other parts of Lloyds Banking Group.

Conversely, this may be counting against it when it comes to holding on to staff, suggests one Edinburgh-based fund management headhunter.

"The feedback I've received from people at SWIP is that it's difficult to make your voice heard in such a large institution," they say. "Internationally speaking it's not huge, but within Edinburgh it is. Currently, small or boutique firms are a more attractive option."

SWIP is, however, likely to announce replacement hires in the coming days, including a successor to Ian Vose, head of global developed market equities, who left for a rival firm in London.

Martin Currie's chief executive, Willie Watt, said: "Emerging markets are now a mainstream asset class and it is our intention to build a world class offering to help our clients achieve their investment goals."

The firm appears to be on something of a hiring spree, despite posting a 36% decline in profits last year. It also promoted Ruairdah Stewart, to co-manager of its global resources fund earlier this month, following a string of senior hires towards the end of 2009.