City National of Beverly Hills Is Broadening Investment Strategies in a Push for Assets

The trust and investment management arm of Beverly Hills-based City National Corp. is expanding its range of investment strategies to capture new assets.

City National Investments, which has $14 billion of assets under management and administration, has relied on a large-cap growth strategy in managing portfolios for wealthy clients. Last year it added a large-cap value strategy, said Vernon C. Kozlen, executive vice president.

Now, he said, the unit wants to expand into asset allocation and portfolio design and broaden its strategic base to encompass different market segments and capitalizations.

Richard A. Weiss, who joined City National Investments last month as chief investment officer and senior vice president, brings expertise in quantitative investment strategies.

Mr. Weiss, 40, was previously the chief investment officer and an executive vice president at Los Angeles-based Sanwa Bank California, where he had success with small-cap domestic and international products. City National may add such products to its lineup, he said.

"We're clearly seeing increased demand by clients in expanding and developing different strategies as our client base broadens from the trust management client to more diverse clients," such as middle-aged professionals; young, affluent technology executives; and entrepreneurs, Mr. Kozlen said.

"We would like to double assets every three years in the near term," he added. City National Investments provides investment management services for $4 billion of assets. "Our current goal is $10 billion in the next three to four years," he said.

City National Investments' average account falls in the $2 million to $3 million range, and Mr. Weiss said the company would maintain its focus on wealthy investors.

The company is also adding to its proprietary mutual fund family, the CNI Charter Funds. The fund family was started this year, comprising three money market funds, and manages about $2 billion of assets. Two equity and four fixed-income funds are being registered and are expected to be opened to investors in January.

Brian Garbe, who worked with Mr. Weiss at Sanwa, has joined City National Investments as a vice president and director of research. The company is also recruiting two or three portfolio managers, Mr. Kozlen said.

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