Barclays fund arm to boost spend

Barclays Global Investors (BGI) is seeking an agency to handle its pan-European advertising business as it ramps up the marketing spend for its flagship iShares product.

The fund management division of Barclays Bank is understood to be upping its budget from &£12m to &£20m in Europe as it looks to strengthen its business in key markets such as the UK, France and Germany.

The company, the world’s largest fund manager, has worked with Personal, part of the Engine Group, for two years.

The pair have parted “amicably” and the review, which will include advertising and direct marketing, is being handled by The Haystack Group.

The pitch follows the appointment of Ogilvy & Mather (O&M) to handle the advertising account in North America.

O&M gained a foothold in the Barclays business when its Dialogue Marketing Group won the business for the high street bank’s Wealth Management unit (MW June 1).

The Wealth Management Unit forms part of the Barclays Capital division, which is also headed by BGI chairman Bob Diamond. It is not clear whether O&M is likely to pitch for the European iShares account.

IShares’ European head of marketing Rick Andrews says the focus of business has shifted to continental Europe and that BGI now needs a European network that can support the business in France and Germany.

Barclays’ main advertising account for its UK high- street bank business is handled by Bartle Bogle Hegarty. Earlier this month the bank split its &£30m direct marketing account between incumbent EHS Brann and WWAV Rapp Collins (MW August 3).

Barclays said EHS Brann would lead on strategy and planning for consumer direct marketing activity.

Walker Media was appointed to handle Barclays’ &£40m media planning and buying business earlier this year.