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ABOUT CLOSE BROTHERS
ASSET MANAGEMENT
Close Brothers Asset Management
(CBAM) has specialised in managing
client portfolios for over 40 years and
has been actively investing in smaller
companies for over 20 years. With
over 550 members of staff working in
8 offices across the UK, CBAM offers
the full spectrum of advice, investment
management and self-directed services
to private and corporate clients and
professional advisers.
As a firm, we pride ourselves on the
delivery of specialist expertise and
building long term client relationships.
Our values are based on several core
precepts: our word is our bond; it is our
duty to be conscientious; we must do
the right thing by those who put their
trust in us; we stand firm for a more
prudent and conservative approach.
These values underpin our approach
to asset management where we focus
on the robustness of our investment
process and the expertise and
dedication of experienced investment
managers to deliver a tailored, prudent,
liquid and completely transparent
investment service to our clients. Our
overriding aim is to deliver agreed
client outcomes, with a keen focus
on preservation of capital, through
a combination of institutional style
investment management combined
with a personal and comprehensive
approach to client service.
Our smaller companies department
is one of the longest established in
the market and is part of a wider body
of over 50 investment professionals,
overseen by Nancy Curtin, CIO.
THE TEAM AND OUR PRODUCTS
The principal members of the team are
Sam Barton (Investment Director, UK
Smaller Companies) and Stephen Wood
(Investment Manager). Sam joined
Close Brothers Asset Management
in September 2008 from Unicorn
Asset Management. He has extensive
experience in managing smaller
company funds and holds both the
Investment Management Certificate
and CISI Diploma. Sam has over 12
years’ smaller company experience.
Stephen joined Close Brothers Asset
Management in January 2007 after
graduating from University College
London with a Masters in Electronic
and Electrical Engineering. Since
joining Close, his primary focus as a
fund manager has been investing in
UK smaller companies. Stephen is a
holder of the Investment Management
Certificate and is a CFA Charter holder.
He has over 8 years’ smaller company
experience.
In addition, there is a research team
of 6 individuals with sector specific
responsibility who, along with the
other investment professionals, help to
inform the team with regards to sector,
geographic and macroeconomic views.
The service, which is one of the longest
running AIM-based Inheritance Tax
services on the market, has weathered
two bear markets and has delivered
strong performance over the short,
medium and long term against its peer
group. To the end of December 2014,
the service had outperformed both the
FTSE AIM All Share Index and the FTSE
All Share Index over 1, 3 and 5 years.
OUR INVESTMENT APPROACH
We have a rigorous and disciplined
process which focuses on delivering
strong risk-adjusted returns within
the context of BPR investment. We
aim to build diversified portfolios
with between 25-35 constituents
which generally exhibit the following
characteristics:
Strong financial position
Visible earnings
Robust cash flows
Dividend growth
Long trading history
Recognised brands
Strong management team
At the heart of our investment
philosophy is a company’s ability to
generate cash for its shareholders.
The investment team generate fair
value estimates on current and target
holdings by running discounted cash
flow models based on conservative
growth estimates. These are used to
help guide investment decisions. The
team uses a high discount rate to give
an acceptable margin of safety and
to reflect the inherent risks of smaller
company investment.
We have a wide network of broker
contacts and regularly screen
the market for new investment
opportunities. The investment
team conducts over 300 company
meetings a year with management
teams in qualifying businesses. The
team endeavours to meet all investee
companies at least once per year and
will see all new investment ideas in
advance of purchasing shares in a
business. Meetings are used to question
companies’ strategy, current trading,
outlook and profit forecasts.
Since 2013, shares quoted on AIM and
ISDX can be held in ISAs. This means
that investors can benefit from an
investment service that marries the
freedom from income and capital gains
taxes and, subject to qualifying for
business property relief, exemption
from inheritance tax.
“Most AIM shares are ISA eligible. As such, an investor can
enjoy the benefits of an investment portfolio free from income
and capital gains tax whilst also accruing inheritance tax relief for
their beneficiaries”
Sam Barton, Close Brothers Asset Management
+44 (0)207 426 4360
