Manduca in line for chairman’s role at the Pru
PAUL MANDUCA, one of the City’s best-known fund managers, is set to become the new chairman of Prudential, putting an end to a five-month search for Harvey McGrath’s successor.
Manduca, 60, joined the board of Prudential, the UK’s biggest life assurer, as a senior independent director in October 2010 and has been overseeing the search for a new chairman.
McGrath revealed in December he was stepping down after bearing the brunt of shareholder criticism over the group’s failed £21.8bn bid for Asian rival AIA, despite chief executive Tidjane Thiam initially shouldering most of the blame.
More than a fifth of shareholders voted against McGrath’s reappointment at last year’s annual meeting in protest over the deal, which left the Pru with £377m in costs and fees.
Manduca has had a long career in fund management and held a string of directorships, including at Wm Morrison where he helped hire Dalton Philips after Marc Bolland left for Marks and Spencer.
As incoming chairman at the Pru, he would be faced with the task of restoring shareholder confidence after 30 per cent voted against the group’s pay report last week. He would also have to lead the firm through some important regulatory changes to capital requirements.
The appointment, which would first have to be approved by the Financial Services Authority, could be announced as soon as this week according to reports this weekend.
Sir Paul Rudd, chairman of BAA, and Glen Moreno, Pearson chairman, were also tipped as the two front-runners for the job, but it emerged last week that both men had dropped out of the race.
PROFILE: FUND MANAGEMENT VETERAN TO TAKE TOP INSURANCE JOB
PAUL MANDUCA’s fascination with the stock market dates back almost as far his devotion to Wolverhampton Wanderers Football Club.
Born in London, Paul Victor Falzon Sant Manduca’s father came from Malta where his family were one of the three governing dynasties there. Manduca’s mother died when he was a child and he was brought up by his father who owned a security business, which he sold to Securior.
As a schoolboy at Harrow, Manduca was rarely seen without a copy of the day’s share prices and after reading Modern Languages at Oxford, he embarked on his financial career working for broking firm Colgrave & Co.
After a stint as a portfolio manager with Rowe & Pitman, Manduca started to make his name for himself at Hill Samuel Asset Management (now part of Lloyds TSB), running small company funds during the heyday of the Unlisted Securities Market in the early 1980s.
In 1983 he joined Touche Remnant, the investment trust manager, where in 1989, he engineered a £50m takeover by Societe Generale and was made group chief executive. Touche Remnant was then merged with Henderson in 1992 and Manduca became group deputy managing director.
In 1994 he became chief executive of Threadneedle Asset Management, the investment arm of BAT Industries’ financial services operation and eventually oversaw its sale to Zurich Insurance in 1998.
Manduca was then hired in 1999 as head of Rothschild Asset management, where he helped overhaul the firm and win over £10bn in institutional mandates. He left after its disposal to HBOS in 2002.
He finished his long career in fund management as chief executive of the Deutsche Asset Management European operations between 2002 and 2004.
In a surprise move, Manduca then joined the Morrison board in 2005, and helped bring order to the retailer following its takeover of Safeway.
He became chairman of Aon UK in 2009 and has also held directorships for his beloved Wolves FC.