Phillips & Drew
| Company type | Partnership (until acquisition) |
|---|---|
| Industry | Stockbroking, Asset management |
| Founded | 1895 |
| Founder | George Allen Phillips, Harvey Richard Drew |
| Defunct | 1992 (brand retired) |
| Fate | Acquired by Union Bank of Switzerland; merged into UBS Limited |
| Headquarters | London , England, United Kingdom |
Key people | Sidney Perry (partner and leader from 1936) |
Number of employees | 593 (1986) |
| Parent | Union Bank of Switzerland (from 1986) |
Phillips & Drew was a distinguished stockbroking firm and partnership headquartered in the City of London, England. In 1986, it was completely purchased by the Union Bank of Switzerland, which subsequently combined with the Swiss Bank Corporation in 1998 to create UBS AG.
Establishment and initial development
George Allen Phillips became a member of the London Stock Exchange in 1885. After experiencing several unsuccessful collaborations, he partnered with his chief clerk, Harvey Richard ('Dick') Drew, to form G.A. Phillips & Co. in 1895. The company adopted the name Phillips & Drew in 1905 following the entry of Geoffrey Harvey Drew, Dick's brother, as a partner and Phillips’s retirement (who briefly returned in 1907). Control of the firm remained with the Drew family until the late 1940s.
Period from 1936 to 1984
Until Sidney Perry joined as a partner in 1936, Phillips & Drew operated as a modest, client-centered business. By the early 1950s, Perry had assumed leadership and redirected the firm’s focus toward serving institutional investors, specializing in transactions involving gilts for these clients. He implemented a meritocratic system for recruitment and promotion, moving away from family-based appointments. Under Perry’s guidance, the workforce grew to over 350 employees by the late 1960s, and the firm earned a strong standing in equity research and investment evaluation.
Purchase by Union Bank of Switzerland
In November 1984, the Union Bank of Switzerland, predecessor to modern-day UBS, acquired a 29.9% stake in Phillips & Drew and declared its intention for full ownership two years later. At that point, Phillips & Drew comprised 60 partners and 593 employees and was recognized as the foremost dealer of gilts (acting as a GEMM), convertible bonds, and various other fixed income instruments within the U.K., alongside being a leading asset management entity.
Following this acquisition, UBS combined its UBS Securities division with Phillips & Drew and moved operations from both the stock exchange building and 100 Moorgate to the Broadgate complex. Initially operating under the name UBS Phillips & Drew (UBS P&D), the merged entity encountered integration difficulties, including a £15 million loss in 1987 due to settlement system failures and an additional £48 million loss linked to positions held during the October 1987 stock market crash. From April 1987 through February 1988, UBS injected up to £115 million to support Phillips & Drew’s stabilization efforts. After enduring continuous losses, profitability was restored by 1992. Due to ongoing performance challenges, the Phillips & Drew brand was retired in 1992 when the business was renamed UBS Limited; however, its asset management division preserved the Phillips & Drew identity as Phillips & Drew Fund Management.