Caldwell leaves chief executive post at KBC Asset Management

The founder of KBC Asset Management, Mr Gavin Caldwell, has stepped down as chief executive but will remain at the investment company in an informal advisory capacity as well as continuing to chair the Government's recently established asset management Task Force.

His decision to retire after 23 years in charge came as 22 redundancies at KBC were finalised and its parent group announced the Dublin operation will be developed into a centre of excellence for active portfolio management.

Mr Caldwell indicated his intention to step down when the company, established as Ulster Bank Investment Managers, was sold to the Belgian KBC group in 2000 but stayed on to guide it through a difficult recent period.

The market downturn has not been kind to KBC and performances have fallen below previous levels with an average return for the past three years of minus 10.1 per cent annually. Funds controlled have fallen by around €700 million over recent years.

Last month the company announced it was reducing the workforce by a fifth and was seeking 22 voluntary redundancies. Many of the staff were computer workers taken on when the firm was overhauling its IT infrastructure.

"Nobody at a senior level will be leaving," said a spokesman. "Those who left were at junior and entry level and many had a background in technology."

Suggestions that the voluntary lay-off package was oversubscribed were rejected by the company, who said there had merely been many expressions of interest.

With preliminary data suggesting a return to an above trend performance, Mr Caldwell has taken the opportunity to retire.

He is succeeded as chief executive by Mr Sean Hawkshaw, subject to regulatory approval.

Mr Caldwell said: "Twenty three years is a long time for one person to head up a business....There have been many radical changes in the asset management industry over the last couple of years and I have increasingly been drawn away from the core investment and development side of the business."

He added: "We have built a professional team and robust business... I am happy in the knowledge that I am leaving the business in safe hands for the future."

KBC is Europe's eight-largest mutual fund manager with €74 billion under management. At its height, the Irish division's portfolio was worth €8 billion.

Mr Stefan Duchateau, chief executive of shareholder KBCAM NV, said : "We're very sorry to be losing someone of Gavin's expertise and experience."

"I am aware of his excellent standing in the Irish investment community, a position that was recognised when the Taoiseach appointed him chairman of the Asset Management Task Force."

Mr Caldwell established the company in 1980. It was sold to KBC in 2000 for €105 million.