A new milestone at investment management’s ‘best-kept secret’
've been really fortunate the way that it's unfolded and the opportunities that presented themselves – and I wasn't afraid to make the most of them,” says Wendy Ferguson of her decades-spanning career in financial services. And the latest milestone is being appointed chief executive of East Lothian-headquartered discretionary investment management specialist Mcinroy & Wood.
The business, which serves clients and investors including individuals, families, trusts and charities across the UK and overseas with an average client tenure of nine years, has grown to assets under management of £2.2 billion, and about 75 staff, the majority of whom are based at its office in Haddington.
Ferguson is set to in June 2025 take the reins from incumbent Tim Wood, subject to regulatory approval, a promotion from her current role as deputy CEO and director of operations and IT.
The businesswoman is the first non-family member to become CEO of the business that was founded nearly four decades ago by Alan Mcinroy and his stepson Victor Wood. The duo, she says, “had both worked in larger investment management firms, and thought that they could do it themselves”, and set the enterprise up in East Lothian as they felt not being in Edinburgh or London “gave them that independence of thought”.
And Ferguson stresses that she will be maintaining the prudent, long-term, community-focused approach it has cultivated. “We want to carry that on, because it's one of the things we believe makes us different. There are very few privately owned investment management businesses remaining now… and we see that as something that gives us an advantage. It's a differentiator, and we have no desire to change that – we guard our independence very closely.”
Investment management has seen a flurry of mergers and acquisitions (M&A) in recent years. The Investment Association, which is headquartered in The City in London and says its 250 members manage £8.8 trillion altogether, in a 20222023 report on investment management said sector consolidation “has been a constant theme in the industry for many years”, with motivating factors including increasing regulatory costs in the UK.
But as for whether the East Lothian business is set to engage in any such activity of its own, Ferguson says this is definitely not an option, saying Mcinroy & Wood is of the view that meshing two businesses and their respective cultures and procedures can be a far bumpier process than people expect. “When senior teams are busy with an acquisition or a merger, that takes up a lot of their time, and it means that they're not going to be as able to focus on the day to day.”
The firm – which has a wholly owned subsidiary, Mcinroy & Wood Portfolios that is responsible for the administration of its funds – is instead focused on its own organic growth rather than “chasing size by bringing things together”, according to Ferguson. Her CEO appointment comes about a dozen years after she joined Mcinroy & Wood, having originally expected to stay for just a few weeks while doing consultancy work.
That came after the qualified chartered accountant started her career at what is now PWC, where she worked on the Scottish Widows audit for many years. She in fact eventually joined the latter firm (part of Lloyds Banking Group), including working for its thenceo Mike Ross, which gave her a cross-section view of how the pensions and insurance firm operated. She then spent a spell in the Edinburgh office of accountancy firm Grant Thornton.
She then joined Mcinroy & Wood, where she is also the first woman to take the CEO tiller, the significance of which she says only became apparent after her appointment. “I think it shows how much work our sector still has to do, that other people are complimenting me on being a woman appointed to this position,” she adds, and is keen to do what she can to help pave the way for others to follow suit. “The more women we have in C-suite positions to balance the decision-making and the thought process, the better. It can only be a good thing.”
A report from Statista has found that the share of women in C-suite roles in the financial services industry worldwide reached 18.4 percent in 2023, and is expected to grow to 21.8 percent by 2031.
Ferguson also currently serves as trustee and chair of the finance and risk committee at The Smith-magenis Syndrome Foundation UK, which helps those with the rare genetic developmental disorder. And she says it comes after, when working at Lloyds, she asked for advice on how to give back from Dame Susan Rice when she led the lender’s
Scottish arm and also sat on various committees – and in fact was last year named chair of Forth Green Freeport.
Giving back to society gives you a healthy sense of perspective, says Ferguson. “And you're not just thinking about the wealth sector or money, you're thinking about service more broadly.” Mcinroy & Wood in fact says:“ourresponsibilitiesto wider society begin with due acknowledgement of the social and cultural fabric of our own community.”
Ferguson is keen for the firm – which says she says some clients refer to as “the industry's best-kept secret” – to now grow its profile as well as its funds under management and headcount, also boasting staff in London and Harrogate.
It is not outlining specific targets, but prioritising “sensible, sustainable, scalable growth – not just growth for growth's sake” and retaining its personalised service.
We guard our independence very closely