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Unabridged Version
ERISA's passage in 1974 was literally the opportunity of a lifetime for Charnley & Røstvold - for with the official recognition of institutional investment management and its special requirements came the need for a whole new way of professional marketing and client service for investment management.
But first, Charnley & Røstvold had to learn what a stock and bond were.
Jackie Charnley and Christine Røstvold were both early 70s graduates of the University of California at Irvine, although neither was destined to meet there. The future business partners were on clearly distinctive career paths.
1970 (Back to top)
Jackie Charnley was immersed in the limitless world of fiction - studying under the likes of E. Doctorow and Oakley Hall with aspirations of following in their footsteps as successful contemporary novelists.
Christine Røstvold, an avid student of world history, was evaluating the pros/cons of becoming an attorney.
Fortunately for both and for clients-to-be, these paths failed to materialize.
1975 (Back to top)
Johnson O'Connor Human Engineering tests led Charnley to move from writing fiction to non-fiction, which in turn led to a free-lance editor/writer position at Collins Associates, a pension consulting firm established in 1975.
It was an exciting time as Collins began advising Southern California Edison, Safeway, Wisconsin Electric, The Mead Corporation, the Charles F. Kettering Foundation, and Philip Morris. Wells Fargo was just starting to promote index funds, and international equity was a specialty investment. Ahead of his time, Collins was promoting multi-asset, multi-manager platforms for institutional investors and seeking exceptional managers who could deliver strong performance consistently.
1976 (Back to top)
The swift growth of Collins Associates and Charnley's own advancement, led Charnley to interview candidates for a research position. The victorious candidate who had been working at a law firm was Christine Røstvold. Thus began a decades-long friendship and career path for the two.
The years at Collins Associates proved to be a fascinating education - in institutional investment, in sales and marketing strategies, and in running a small business. Reviewing hundreds of prospect presentations and dozens of final presentations, it was evident to the pair that the correlation between investment skills and communication skills was low. They approached Budge Collins, asking if they could start a new division, one focused on helping the investment managers. He cited conflict of interest and desire to stay focused on meeting plan sponsor needs.
That decision proved to be opportune.
1978 (Back to top)
In June 1978, Jackie Charnley and Christine Røstvold launched their own firm - focused exclusively on helping the investment management community achieve success with institutional investors.
But where to begin? How to sell? Mentor Ben Robinson, an investment manager with Crowell Weedon, advised, "Simply tell your prospects what you want to do…you don't have to "sell" them. There will either be a fit or not." That sounded like good advice. They took it.
July 12, 1978, Robert Kirby, Chief Investment Officer at Capital Guardian Trust Company, took time to visit with the two …in the 125-square foot garage-attached office behind Christine's mom's home in Corona del Mar. As he sat on the lop-sided used couch across two beat-up metal desks from the 1950's offices of Christine's dad, Kirby asked, "Can I loosen my tie?" In the summer heat, with no relief from air-conditioning or even a fan, his three-piece suit kept the meeting short. He encouraged the two to focus on what they could offer investment managers - an objective perspective, clarity in communications and an experienced resource. More good advice they took.
They also learned about the most expensive tie in the world - Bob wore a navy blue tie dotted with the number 24. His award from participating in the 24-hour auto race called Le Mans, it truly was the most expensive tie in the world.
Charnley & Røstvold set up prospect files on the financial centers - New York, Boston, Minneapolis, Denver, San Francisco, Los Angeles, Chicago, and Philadelphia. Using the 1978 Money Market Directory, they contacted every manager in the target cities with over $10 million under management, wrote introductory letters, called to introduce their services and set up meetings.
They supplemented cold call efforts with a direct mail campaign and built a database of 200 firms. They used Joe Griffin's, of Century Capital Advisors', database management system - a wooden box with 5x8 index cards. Every phone call, every correspondence was logged on the index cards, and the next time they phoned, they pulled the card. "How did your last presentation go?" "Did your son win his tournament?" "How was your vacation in Hawaii?" "Did you get to the finals with Oregon?"
Criss-crossing the country, they flew on Sundays to the target cities - set up breakfast meetings at 7:30 and met with seven to eight firms a day, including cocktail meetings with one firm and dinners with others. Sometimes they flew home late Friday nights, and other times, the following Friday evening. They were on a mission.
Chemical Bank in New York became their first client - as John Carroll likes to say, the sales pitch was a little desperate - "Please, please let us work for you…we'll even pay." And one prospect in San Francisco mused, "How would two young girls be able to tell me what to do?"
Despite the requisite early struggle to attract clients, it didn't take long once the results of their efforts to attract clients became public.
1979 (Back to top)
Western Asset was the first of many notable successes. Within three months of Charnley & Røstvold repositioning their investment products, firm distinctions and communication approach, Western Asset had its first new piece of business in over a year. A $900 million piece of business! Six more product pieces followed.
The press interviewed Jack Sullivan who had hired them at Western Asset to learn what had attracted the business. Jack graciously credited the contributions of Charnley & Røstvold, and Pensions & Investments contributed by publishing an article on the fledgling firm.
1980 (Back to top)
Nearly a dozen completed client projects later, the Frank Russell Company also recognized a difference in some of the investment manager communications coming their way.
The managers recognized Charnley & Røstvold as the firm helping to make a difference.
Richard Lothrop, then head of the Frank Russell manager consultant group, invited the two to Tacoma to present Charnley & Røstvold's services to his team. Proudly presenting all their work for seven different investment firms - brochures, presentation books, excerpts from Competitive Positioning Analyses - to a conference room full of senior Russell executives, Charnley & Røstvold hoped for approval.
The result was even better - Russell consultants referred business!
Institutional Investor took note of the new "Professor Higgins" in the industry and published an article.
Russell was hosting the Russell conference in May, which was to become AIMSE, and Charnley & Røstvold was invited to speak - on the "Seven Deadly Sins of Presenting," a speech you may still find valid all these twenty years later. (Link to speech handout).
John Seiter then of Lionel D. Edie and Tony Correnti of Waite + Correnti, both familiar with the Charnley & Røstvold team through Collins Associates, offered coaching help to the two first-time investment industry presenters. Again, the result was better than anticipated. Audience members asked if the two could train their sales and investment professionals to give team presentations the way they did.
Another new service was born!
Jennison Associates selected Charnley & Røstvold to help with market research and firm communications. The firm had $350 million under management then. Today, still working closely with the firm and John Hobbs, Chief Executive Officer, the Charnley & Røstvold team has contributed to Jennison's growth to over $100 billion and proudly serves as an extension of the industry leader's marketing staff.
1980 was the same year that the team began work with Gary Pilgrim and Harold Baxter at Philadelphia National Bank - an assignment memorable for many reasons, not the least of which was the great joy with which that investment team approached its work. MacKay Shields, Girard Bank, Republic National Bank of Dallas, Southland Trust, Argus, Criterion - all became clients.
The consultant team was also invited to speak at an A.G. Becker conference in Meadowland, New Jersey - meeting Martin McKerrow, David Booth, Randy Springer, Rollie Woltjen, Ross McAdam, Richard Boggs and Robert Thomas. The start of many great, long friendships and many more referrals.
1981 (Back to top)
The Charnley & Røstvold duo faced an important decision with increasing demand for services and limited supply. Did they want to become a high growth company and add staff/professionals to take on all the inquiries they were now getting? Or, did they want to stay exclusive and work directly with the clients themselves? They chose the latter, raised their fees and continued to work as a team on every client project. File cabinets in the shower, however, were an indication - it was time to move!
Charnley & Røstvold bought a shabby fixer-upper mobile home in El Morro on the cliffs of North Laguna Beach overlooking the Pacific Ocean and converted it into a sleek, efficient office. Harold Baxter of Pilgrim Baxter drove up, made it to the door and said, "What were you thinking??" As Harold strode through the cramped entry and walked into the renovated offices, he turned and smiled, "Brilliant - absolutely brilliant." Spacious, with an unmatchable view, it proved to be the perfect place to build a team and meet and work with clients.
Long bonds peak in October 1981 @ 14.68%
1982 (Back to top)
Florence, Italy. Jody Strakosch, an account executive for Metropolitan Life Insurance Company, was on her honeymoon in Italy, and sat across from some fellow tourists in a family style restaurant in Italy. Jody, in her outgoing way, peppered the two women with questions - where are you from? What do you do? And then halfway through the conversation, Jody leaped from the table - "You're the girls from California! You're the girls from California!"
Turned out, Metropolitan Life Insurance Company was looking for a marketing consultant, and although people in New York couldn't recall the exact name of the firm, they had encouraged Met to contact the "girls from California." After a delightful dinner in Florence with Jody and her new husband, the "girls from California" flew to New York, and another unforgettable business relationship was struck.
Over the next five years, the team would train the Metropolitan Life Insurance Company GIC sales force into one of the most successful investment management selling teams in the industry. Graduates of that program, and now long-time friends, include - Peter Jenks, Chuck Blair, Chris Blair, Terry Reynolds, Nancy Campbell, Marie Mattie, Brian Hamel, Emil Hunter, and those who have moved - Jeffrey Lagarce at Fidelity, Doug VanderLinde previously from Putnam, John Wylie who founded his own firm, CapitalWorks, with great success, Jim Wakefield at Aeltus, Rick Fee at Trinity Investment Management, Steve Paddon at State Street Research & Management, and George Jamgochian at Credit Suisse.
David Booth, while at A.G. Becker, called Charnley & Røstvold to see if they would be interested in helping with a new company he wanted to start - Dimensional Fund Advisors. Small cap indexing was a whole new concept - one that proved to be the perfect foundation for a suite of products. The program at Dimensional Fund Advisors was also the introduction to Roz Hewsenian, now of Wilshire Associates and the opportunity to work with Rex Sinquefield, a friend from Collins Associates' days.
1983 (Back to top)
A high point of the team's career was a call from John Seiter at Capital Guardian Trust Company, which in turn led to many projects over the years. From materials to competitive positioning analyses to surveys, it has been a special pleasure to contribute to this outstanding firm's success. Working on Capital Guardian materials was also the beginning of many successful collaborations with The Alvarez Group - a very successful design firm in Los Angeles.
This was also a year where managers in Toronto, Canada, noticed Charnley & Røstvold's work, and Toronto became a regular destination.
On February 18, David Booth and Jackie Charnley switched houses - with Jackie moving to a Brooklyn Heights three-story renovated brownstone and David moving to a townhouse in sunny Southern California. The two only moved their clothes. After three weeks, David called and told Jackie, "When you get tired of living there, sell it. I am never coming back." And that's how Dimensional Fund Advisors came to move their headquarters to Santa Monica, California.
1984 (Back to top)
While at AIMSE in Florida, Fred Applegate asked Charnley & Røstvold to hold a day in the summer to work on a project he couldn't talk about. Later that summer, Fred, along with Art Nicholas, drove up from San Diego, and the four shook hands, then sat down to plan how Nicholas-Applegate could start its firm and launch its small cap product. It proved the beginning of a long, highly successful relationship, one that has turned into a long-standing friendship. In 1984, Nicholas-Applegate consisted of five people, and today, with over 300 people, Charnley & Røstvold is still providing counsel.
At the same time, Brian Fitzgibbon had left Metropolitan Life Insurance Company to join Nomura Capital Management. He called Charnley & Røstvold. The Japanese company wanted help in targeting the U.S. pension market. A two-year program ensued with great results as Nomura became the investing industry leader in the Pacific Basin, and one of the first and only Japanese firms to have measurable success.
Missing the California lifestyle, Charnley sold David Booth's brownstone in Brooklyn Heights and returned to warmer climes.
1985 (Back to top)
Paribas, one of France's largest, most successful banks, started work with Charnley & Røstvold, seeking to enter the U.S. institutional market. ABDI International, German-based, also engaged the firm. The team's work took on an international flair. NWQ in Los Angeles was just a start-up, and Charnley & Røstvold helped define the value process that would prove so successful.
1986 (Back to top)
Jeff Miller at Provident Investment Counsel sought the firm's help, and a competitive positioning analysis and fresh new materials, produced with the help of Nita Alvarez, helped Provident reach new growth objectives. Mike Fisher, a true friend from the Collins Associates era, while at Chase Investors, shop-within-a-shop, became a new client! The Frank Russell Company invited the consultant team to speak at the Silverado in the wine country on "How to Stand Out From the Crowd in the Sales Process" at their investment manager conference. The team was also invited back to AIMSE to give the famous "Seven Deadly Sins" speech once again. The two spoke at the Investment Counsel of America that year as well.
Christmas Eve brought a phone call from Robert Mersky of Peregrine Capital Management, a newly formed subsidiary of Norwest, who inquired about the Charnley & Røstvold services. After a memorable two-hour exchange, the $300 million assets under management Peregrine hired Charnley & Røstvold to start a full competitive positioning analysis program in February 1987. A 16-year consulting relationship has seen Peregrine expand to over $10 billion under management and 45 people.
1988 (Back to top)
In September, Charnley & Røstvold made a presentation on Product Positioning at the Callan Investments Institute Fall Investment Management Business Conference in Pebble Beach, CA.
1989 (Back to top)
The year began with a focus on bonds - Charnley & Røstvold helped Jennison with a piece promoting the merits of long bonds. This at a time when long bond rates were 8.93%, a return then comparable to historic equity returns. August 16, 1989 saw Charnley & Røstvold speaking at the Columbine Conference in Colorado Springs.
1990 (Back to top)
Prudential, Weiss, Peck & Greer, PruAsia, U.S. Trust Company of New York - all kept the consulting firm busy. One of the highlights of 1990 was working with Dwight Churchill at Capital Supervisors - tackling a turn-around as the firm recovered from negative publicity and rebuilt their team and image. Another highlight was a trip to Asia, which included working with PruAsia in Hong Kong and Nomura Asset Management in Tokyo. The relationships with Jennison and Nicholas-Applegate continued strong, as both began expanding their franchises. In October 1990, Charnley & Røstvold spoke at Financial Analysts Federation (FAF) in San Francisco.
1992 (Back to top)
Patricia Holmes joined the team in the spring of 1992, contributing much-needed support and organizational skills. This also was the beginning of consultants moving more to new technologies and desktop publishing in their presentations. With the addition of Pat, Charnley & Røstvold was able to progress quickly into developing effective, appealing presentations for our clients.
1994 (Back to top)
Another rewarding year of new and old relationships - working in Boston with Scudder; San Diego with Chandler Liquid Asset Management; in Denver with INVESCO; Reich & Tang in New York, and return clients calling - Prudential in New Jersey, Nicholas-Applegate in San Diego, Peregrine Capital Management in Minneapolis, Jennison in New York, MetLife, but this time with a program in London for an international subsidiary. Monthly trips to London prove challenging!
1995 (Back to top)
First quarter 1995 was the start of Sally Stalcup's career with Charnley & Røstvold. Sally brought a fresh new perspective to the firm and great energy to our research effort. Berry, Hartell, Evers & Osborne became a new client, while programs with Allmerica, Jennison, Nicholas-Applegate, and Peregrine continued.
1996 (Back to top)
The best part of 1996 was meeting and collaborating with Ted Voss, a veteran of traditional marketing research and consulting. Not only was a working relationship born, but a lasting friendship as well. Charnley & Røstvold was again closed to new business for the better part of the year, working on multiple projects for the retainer client base. A speech at the Institute for International Research was well received.
1997 (Back to top)
Charnley & Røstvold moved from the now-renowned mobile home office in Laguna Beach to a bluff overlooking Dana Point Harbor, five minutes south of the famous Ritz Carlton Hotel in Laguna Niguel. The team began to help managers with more sophisticated ways of presenting, including the use of multimedia and laptops. Anna Joachim began her career with the firm, and with the benefit of summer intern experience, moved quickly into working on the Nicholas-Applegate relationship.
A May 28, 1997 luncheon in Los Angeles at Engine Company #28 restaurant with Joanne Weckbacher and Prenecia Parnell of Capital Guardian Trust Company was the official start of PAICR - the Professional Association for Investment Communications Resources. The ideas and brainstorming at the lunch then set in motion a plan of action to form the non-profit association that gives the investment community a forum for education, networking and professional recognition for the "invisible" workers in the investment field. Jackie, Christine, and Patricia Holmes became founding board members and directed the firm to support the association in every way possible.
1998 (Back to top)
A major success this year was a collaborative survey on behalf of Capital Guardian Trust Company, Strong Capital Management, Jennison Associates and Nicholas-Applegate with over 230 plan sponsors providing their input on what they expected in terms of using new technologies in client service.
UBS/Brinson became a client through the familiarity of former Charnley & Røstvold clients - George Jamgochian, Jim McCaughan, Obie McKenzie and Wayne Thornbrough, all colleagues at UBS/Brinson. Jim Fox, also a former client, now headed Clifford Associates and enlisted the firm's services. When Clifford became a client, Sally Stalcup spearheaded an intensive market research effort into the not-for-profit investment arena.
Linda Sherman joined our team in 1998, and proved to be an invaluable addition, as members broadened the scope of their work and travels. Linda became the lead on market share analytics and handled the travel arrangements for the entire team.
Also in 1998, Patricia Holmes' expertise expanded to include project management of Web Site development, as the PAICR site developed under her leadership. Christine's fund-raising efforts helped ensure PAICR's future, while the rest of the team focused on building the fledgling organization's communication and education programs and membership.
1999 (Back to top)
Marketing plans, formalizing the strategies for identifying and supporting different distribution channels into different target markets, was a key focus throughout 1999 as clients diversified their businesses. Christine and Jackie criss-crossed the country, both on client trips and speaking at an IMI Conference in New York and AIMSE in Florida.
2000 (Back to top)
The foray into Web Site development continued, as Charnley & Røstvold collaborated with different resources to build new and innovative communication platforms for clients.
As Prudential moved its active equity management to Jennison, John Hobbs hired the Charnley & Røstvold team to oversee the new client communications and reporting. A communication platform, both in written and web form, was developed for providing informative and timely portfolio updates on the firm's expanded product line-up to the clients and distribution partners.
Sally Stalcup was invited to the PAICR Board in recognition of her efforts to grow membership and support the organization. She immediately became a member of the Educational Committee and now heads up the 2001 Conference in San Francisco.
2001 (Back to top)
Jaime Sigillo joined the Charnley & Røstvold team in March 2001, bringing a wealth of energy and enthusiasm. Jaime's is the warm, welcoming voice you will hear when you call our offices.
2001 brought exciting new projects with Cadence Capital Management in Boston and Metropolitan West Asset Management in Los Angeles, as well as an experience that has forever changed the lives of Christine and Jackie. On September 11, 2001, Chris and Jackie experienced first-hand the horror in Tower Two of the World Trade Center. For the full story of the terror, odyssey and acts of kindness, click here.
Terror, Odyssey and Acts of Kindness
Anna and Sally changed their status from "Miss" to "Mrs." - Joachim and Stalcup, respectively.
2002 (Back to top)
Old friendships with Gary Lisenbee and Steve Borowski turned into a very rewarding relationship with a series of projects for Metropolitan West Capital Management in Newport Beach - and a much-desired client in our own neck of the woods.
Sally Stalcup led PAICR to new heights in 2002 as the organization's President.
2003 (Back to top)
The business partners raise the same question every year - and every year Jackie Charnley & Christine Røstvold reevaluate what they individually want to do - the answer continues to be the same - work directly with clients. Client work is challenging, rewarding and ever evolving. Just like the firm.
The Charnley & Røstvold consulting team collaborates on every client project. Every member knows what a client wants to accomplish and has input as to how best to accomplish that objective. Every member applies their individual strengths to achieve a successful outcome. When you are a client, you can call and receive prompt, personal service and useful information every time.
Their ACT database keeps tabs on over 3,000+ contacts - including clients and former clients from over 200 investment management firms, prospects representing over 1,200 investment companies, research contacts, resources for design, web site creation, advertising, public relations, database systems and other services necessary to investment managers.
Services today emphasize competitive positioning, strategic communications and training. Collaborating with resources across the country, the firm's focus remains the same today as it did in 1978 - helping investment management firms be the best in the business.
2004 (Back to top)
2004 started the year with a new partner – Sally Stalcup – which was an exciting evolution for Charnley & Røstvold. Sally’s remarkable ability to connect with people, listen and follow-through makes her a natural to become a partner in such a client-centric firm. Sally focuses on training research programs at the firm.
Institutional client and investment management firm employee surveys, along with assignments in the rapid growth alternative space enriched the work projects at Charnley & Røstvold in the first half of 2004. Documenting selection criteria for hedge funds and funds of funds helps the firm position alternative investment clients competitively and ensures presentation content covers all the bases. Demands for training programs accelerated in the summer, as investment firms across the country prepared for high activity in the latter part of the year.
Charnley & Røstvold services today emphasize competitive positioning, strategic communications and training. Collaborating with resources across the country, the firm’s focus remains the same today as it did in 1978 – helping investment management firms to be the best they can in the business.
April 1, 2004 brought Jacob Craig Joaquim instead of April Fool’s! Anna and her husband Mike are proud parents, and we are all so happy for them.
2005 (Back to top)
Charnley & Rostvold celebrates their 27th anniversary of serving the investment community. The stork brings a baby girl, Sophia, to Sally and her husband Karl on March 14, 2005. Anna, husband Mike and son Jacob move to Monument, Colorado as Mike becomes a Colorado Highway Patrol Officer - and they are expecting their second child early next year.
In April, we were excited to welcome Rick Shaughnessy to our team. Having worked together during his eight-year tenure with Nicholas-Applegate, we knew our clients would benefit from his broad experience, valuable perspective and exceptional writing skills. Regrettably, the commute from Coronado to Dana Point proved daunting for Rick, and at year-end, Rick launched his own consulting practice out of Coronado. Rick is pleased to have more time for family and to pursue his other passion - competitive sailing. We wish him all the best.
2006 (Back to top)
Today, we continue our work with long-standing client Nicholas-Applegate Capital Management – helping to organize their sales training meetings, working with MetWest Capital Management through an ownership transition, and working with new clients: UBS Global Asset Management on an organizational assessment and respositioning, and start-up hedge fund managers Wagonhound and Investment Science Corporation to prepare for launch.
Pat Holmes, a 14-year veteran of Charnley & Røstvold, and her husband Charles, moved to Mount Holly, North Carolina to be near Pat’s five sisters and mother. Pat remains a valued member of the team working independently from her home office in Mount Holly. The stork visits Anna and Mike again in January with a bright, beautiful little girl, Riley. Brother, Jacob loves his new little sister.
2007
(Back to top)
Change. The ever present factor in all the seasons of all our lives. Invited by Margaret Towle, Chair of the Monitor Editorial Advisory Board, to author an article on our industry, Jackie and Christine wrote on "Change in the Industry: A Sea of Challenges and Waves of Opportunities." The Monitor serves as "the voice of the Investment Management Consultants Association." You can learn more about IMCA at www.imca.org. A copy of the article is available from the Home page of our web site. We would be happy to learn what you see as some of the most important changes - past and future - in our industry.
Moving offices onward and upward to San Juan Capistrano was a wonderful event at Charnley & Røstvold this year. We selected a brand new office complex in the beautiful village of San Juan, close to the Mission, the train station, the restaurants and shops, the parks. Yes, we miss the ocean views of Dana Point, but we're enjoying the proximity to all that San Juan offers. We designed another open office environment, which fosters instant shared knowledge on all client work, as well as informed service that meets our clients' needs in a timely manner. Come visit, and then maybe we can enjoy a lunch at Tannin's, a wonderful Italian place, informal and delicious, or at the SunDried Tomato, a more contemporary California dining experience. Or of course, there is Richard M. Nixon's old haunt, his favorite Mexican food restaurant, El Adobe.
Entrepreneurial shops breed entrepreneurs - and we were sad to have Sally Stalcup leave the C&R team, but applauded her initiative in starting her own consulting practice. We also congratulated Rick Shaughnessy on his success with Coronado Pacific Group.
We also welcomed Pat Holmes back to sunny Southern California from her year in North Carolina. Yes, the real estate is better priced in "No" Carolina (as we call it), but family, friends and all that makes Southern California one of the greatest vacation spots in the world attracted the Holmes family back.
A lot of our children are starting new adventures of their own. Scott Sherman, Linda's son, is finishing his last year of middle school, and is becoming an accomplished guitar and saxophone player. Christine's nephew, Brian Shiokari, started high school and is pursuing his passion - soccer, and niece, Hailey, started Montessori school right next door to C&R's new office and is a frequent after-school visitor! Jordan Charnley is the offensive line of the Greenville Panthers, at Greenville College in Illinois, and started his college career, while Kendall Pierce, Karen's daughter, moved north to California State University at San Luis Obispo.
Our work continues to center on alternatives, funds of funds and traditional long-only strategies. Repositioning mature firms, presentation training, and helping launch start-up firms were some of the interesting projects with which our team was involved this year. A highlight was helping Grail Partners with its Investor Conference, working with six of the Chalice Fund portfolio companies to ensure informative, well-delivered presentations. Working at the Cloister at Sea Island, and participating in the Conference, was a treat and extremely informative.
Seeing our clients succeed at winning more business as a result of our work together is always rewarding. Our clients included such diverse companies as Chandler Asset Management, Greenwich Investment Management, Nicholas-Applegate Capital Management and Rigel Capital LLC. Conducting a client survey for Systematic Financial Management, and talking through plans to grow the company with the CEO and the COO helped to develop a solid platform for the future for that company. Working on presentations and marketing plans for Connors Investor Services, Investment Science Corporation and Nicholas Investment Partners, formerly Wagonhound Investments, was especially meaningful to us as we have had long-standing relationships with the principals of those firms at their prior shops. Serving as an extension of UBS Global Asset Management's marketing team is always a pleasure and honor.
We finished the year in high demand, and have many wonderful opportunities for 2008. For the continued confidence of so many in the industry, we are grateful. For all the friendships we enjoy, we are blessed. And for the many accomplishments of our team, we are proud. We look forward to continuing to help our clients succeed in the future. As most of our clients know, we partner with different consultants in the industry whenever it can better meet our clients' needs, or we refer business to other groups when the project or the time frames warrant.
What remains constant is Charnley & Rostvold's commitment to client success. We endeavor to help our clients to prosper, to serve their own clients better, to reposition as needed, and to be rewarding, motivating, and enjoyable places to work. The industry has served our team well over the years, and Charnley & Røstvold intends to continue to be a valued resource to the industry.
2008 (Back to top)
Births, Weddings, Engagements, Anniversaries and a Sad Note
The year was filled with milestones, both professional and personal across our team. January started off with the birth of Derek Neff, a third nephew for Christine and her husband Dennis Neff. Christine and Dennis are delighting in their expanding tribe of kids to love and care for.
Once Christine recovered from a back injury, we were off to Germany to work with a talented group of investment professionals committed to sharpening their presentations and strengthening their global marketing success. Although painful to travel with the Euro so high and the dollar depressed in the early spring, it was a wonderful experience. The people were exceedingly gracious, and instead of spending our open time (and hard-earned dollars) souvenir shopping, we explored the city and many interesting museums. A favorite was the Museum of Kommunikation (Communication), which presented the entire history of communication – from the Pony Express to the latest in technology.
It is a distinct pleasure to continue our work with the team at Metropolitan West Capital Management. The investment team, led by Howard Gleicher, continues to deliver outstanding returns in the value arena, whether U.S., International or Global. Investec Asset Management, another repeat-client, enjoyed a very successful entrance to the U.S. institutional market. Founded in Cape Town, South Africa, the firm is growing worldwide with highly disciplined processes. New client assignments a leading hedge fund-of-funds firm and activist manager.
A truly exciting event this year was the tenth anniversary of PAICR, which Christine and Jackie celebrated with other founders, supporters and current board members at the Tenth Annual Conference in New York City. The organization has grown to nearly six hundred members strong in 2008, with events all over the nation, and an increasing membership in Canada and Europe. The current leadership and board deserve special recognition for all their hard work, great enthusiasm and can do attitudes. They are taking the organization further than we as original founders could hardly imagine.
June marked another anniversary – Charnley & Røstvold’s thirtieth anniversary as marketing consultants serving the investment management industry. We celebrated quietly with the Charnley & Røstvold team (both current and former members), a few clients and families at the beachfront home of our friend, Nana Gregory. We met Nana while working with John Hobbs, then CEO of Jennison Associates, in the early 1980s. That is the beauty of this business – the lifelong friends you make.
Scotty Sherman, Linda and Scott’s son, becoming increasingly proficient on the saxophone, has been playing in his high school marching and jazz bands at various events around Orange County, including concerts at the pier in San Clemente and at Disneyland. Mid-summer, Pat and her husband, Charles Holmes, became first-time grandparents with the birth of Ellie Jean Vertin to their daughter, Jessica and her husband, John Vertin. Happy pictures have showered our office ever since. Later in the fall, Pat and Charles celebrated their thirty-fifth wedding anniversary, still as much in love as ever. Makes all of us smile. We applaud their enduring commitment.
Mid-summer brought an exciting development in Jackie’s life. Her son, Jordan, became engaged to Ty Covington, an incredible young woman from Springfield, Illinois. They met during Jordan’s first week of college in the fall of 2007, and it was love at first sight. They have been inseparable ever since.
On a sad note, Chrisine’s dear sister, Laura Ann Rostvold, after a long struggle with MS and short battle with cancer, passed away in late July. We carry sorrow over her passing, but find solace in that she is free from suffering and has found a more peaceful place in heaven, where she is in good company with their sister Ellen. Their living spirits along with so many fond memories will be in our hearts forever.
In the late summer, Wayne Wagner, Co-Founder of Wilshire Associates and the Plexus Group, and Ralph Rieves, Managing Director of Farragut, Jones & Lawrence, Inc. invited us to write a chapter for their book, Investment Management: Meeting the Noble Challenges of Funding Pensions, Deficits and Growth. They asked us to expand our article, “Change in the Industry: A Sea of Challenges and Waves of Opportunities,” written for the Investment Management Consultants Association (IMCA) May/June 2007 issue of The Monitor. Little did we know that the challenges and opportunities we envisioned in 2007 and mid-2008 were going to erupt into a typhoon of challenges and limited opportunities by the end of 2008 and the start of 2009. We accepted their offer and composed draft after draft, adapting to the turmoil of change happening worldwide and of course, industry wide. The book is due to be published by John Wiley & sons in August 2009. We are proud to be included among such distinguished authors as Peter Bernstein, Arnold S. Wood, Richard Bookstaber, Ron Surz and many others.
International travel was not limited to Frankfurt! Christine and her husband Dennis flew with members of her family to South America in October to celebrate her oldest nephew, Erik Røstvold’s marriage to Patricia Rodriguez in the Virgin of Fatima Chapel in Asuncion, Paraguay. Unlike Frankfurt, the US dollar goes quite far in Paraguay, a poor, landlocked country still suffering from decades of political turmoil. Despite armed guards everywhere, a minimum of paved roads and tent cities housing so many families as constant reminders of the country’s poverty, the people could not have been more gracious and welcoming. The trip included a tour of the hydroelectrical power dam in Ciudad Del Este, which supplies more than 90% of Paraguay’s electricity and 20% of neighboring Brazil’s. A highlight was a visit the spectacular Iguazu Falls – a breathtaking array of 275 falls along the Iguazu River bordering Argentina and Brazil.
In the fall, Karen and Barry’s son, Eric Pierce, made the Dana Hills high school baseball team in the first round of tryouts. An impressive pitcher, it is going to be fun to watch his career. His sister, Kendall continues to do well at California State University at San Luis Obispo.
2008 marked the 24th year of our relationship with Nicholas-Applegate Capital Management. We are proud of our many years of service to so many there - from helping the firm launch in 1984, serving as its virtual marketing staff for years, working on messaging and positioning during the years of massive growth, and training generations of professionals, to these recent years organizing and producing the sales meetings.
As the year closed with the markets plummeting in the fourth quarter and no place to hide in the capital markets, we touched base with our clients and competitors. Having started in the industry in 1975, when the 73/74 Bear Market was still fresh on everyone’s minds, and then having lived through the junk bond and LBO crises in the 1980s, surviving Black Monday in 1987…pushing our business to survival shores after the ups and downs of the 90s, and worse the tech bubble and 9/11 in the 2000s…we knew the unfolding environment was going to hold more of a challenge than ever before. We told our team to expect our clients to undergo lay-offs, cancel or postpone projects and shift priorities. We encouraged our team members to spend more time with their families, take vacations, schedule doctor appointments, and complete spring cleaning. Because once a period like this is over, the phone rings off the hook, and Charnley & Røstvold is challenged to accommodate all the requests. We are generally an early indicator of the industry rebirths. Let’s hope that comes soon!
But there are always silver linings. We celebrated the close of 2008 with more time with our families than we have enjoyed in years. Cindy and her husband, Gary, took off for a well-earned vacation to Arizona. Most everyone hosted happy holiday events at their homes. Jackie enjoyed a month-long visit with her son Jordan, home for the holidays from Illinois, and his fiancée, Ty Covington. Their growing love and respect for each other warms Jackie’s heart. We all feel very blessed.
2009 (Back to top)
“Learn from yesterday, live for today, hope for tomorrow”
~Albert Einstein
Hope. As world leaders unite to develop solutions to the world economic crisis, as President Obama moves forward with his initiatives, as the markets begin to find their bottoms and some in fact move to early signs of recovery, we have hope for the morrow.
It is interesting to see how investment firms are weathering these challenging times, with equal measures of perseverance, skepticism and optimism. While the phones have been quieter than usual, we are grateful to have projects underway for both ongoing and new clients. The smaller firms reach out by sending their presentations and materials and asking for perspectives. The larger firms are in the midst of continued lay-offs as we approach mid-year, the severity of which depends on the financial strength of the parent company and the management approach. The lean and mean firms are obviously benefiting from fewer lay-offs.
Several firms, fortunately for us, are taking advantage of their competitors’ focus on cost controls and survival to bring on senior people and build out stronger institutional efforts. Reassessing competitive strengths and weaknesses, positioning for new strategies, sharpening key messages, refining presentation content and training programs are the areas of greatest interest.
We are taking advantage of the slowdown to connect with long-time industry friends and new acquaintances to see how they are doing, hear their perspectives, contemplate the dramatic changes impacting our industry and envision our futures.
Reports from our clients that RFP and finals activity is picking up, and new mandates are being won and funding again are positive signs of recovery. We can all hope that the worst is behind us and the balance of 2009 will bring more steps forward than back in our world economics.
We also took a moment this year to honor the memory of a distinguished American Veteran, a 56-year Lifetime PGA Member and Jordan Charnley’s grandfather, Arthur Jacobus Berweiler, who lived to be 100 years young. “Jack” will be remembered for his gentleman-like ways as he peacefully died in his bed with family and friends around him on April 29, 2009. Thank you, Jack, for how much love you shared with all of us.
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