Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

How Close plans to crack the multi-family office market

Close Brothers Asset Management is aiming to grow its presence in the multi-family office market under new head of private clients Penny Lovell.

With around 40% of the £2.2 billion that Close manages in bespoke mandates in the £5 million-plus bracket, Lovell says this – alongside the firm’s extensive platform – means it has laid solid foundations to offer clients a multi-family office-style service.

Under the stewardship of William Ladenburg, the firm plans to engage more actively with its family clients and external family offices to meet their differing and evolving needs. This could involve running mandates for family offices, or simply providing them with technology and support, Lovell said.

‘You may be a family who has made £20 million from the sale of a business and you want someone to look after it, or a family that wants a family office but doesn’t want the staff and the aggro,’ she said. ‘We can white-label through Close Brothers Asset Management and this is something we will look to help families with more.’

The firm will also work with family offices that may have significant assets under management but prefer to outsource in a certain area.

‘As an example, you could have a family that wants to run its own private equity portfolio and they just want some core investment management services. They can use us and have a dedicated portfolio manager, use our analysis or investment process,’ she said.

On the subject of picking up business from family offices looking to outsource certain functions, she added: ‘Effectively they are using our platform to tap into resources, which could be more cost efficient than bringing in their own team.’

Lovell, who joined Close from Rothschild Wealth Management back in November, said the firm is not looking to review its charging structure following the retail distribution review (RDR) and puts total expense ratios on portfolios run by the team at around 1%, depending how much is in collectives or direct equities.

‘RDR has brought some clarity, but there is still some way to go. I would like to think there are a lot of good wealth managers out there who are already on the road to transparency, and Close is definitely one of them. We are very mindful of costs in the portfolio,’ she said.

Lovell has been encouraged by the growing level of enquiries the firm has received from new clients, which she puts down to Close’s efforts to raise its profile coupled with strong investment performance over the past few years.

‘We are getting more business introductions than I have known in a good five years,’ she added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter