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.

Why Rathbones’ Chillingworth is backing SJP ahead of RDR

Why Rathbones’ Chillingworth is backing SJP ahead of RDR

Rathbone Recovery manager Julian Chillingworth is backing St James’s Place and Aberdeen Asset Management as two companies that stand to grow in the post-retail distribution review (RDR) world.

The Citywire A-rated manager said he would consider topping up his fund’s position in St James’s Place if Lloyds completely spins off the wealth manager, and remains positive on the investment business ahead of the onset of the RDR. Chillingworth and co-manager Marina Bond have held the stock for more than a year.

‘I would look to revisit it if it is spun off from Lloyds. It has got a great business model. I saw them six to eight weeks ago and they sounded pretty relaxed going into the RDR and 2013,’ he said.

Likewise, Chillingworth, who is also Rathbones’ chief investment officer, highlights Aberdeen Asset Management as another financials stock that looks to be well positioned for the RDR.

Having held the stock for nearly three years, he has nearly tripled his initial investment – helping to contribute to a 37.6% rise in his fund over the three years to the end of November, and outpacing a 28.3% rise by the FTSE All-Share index, according to Lipper.

He is also positive about Aberdeen chief Martin Gilbert’s decision to halt acquisitions over the past few years and focus on organic growth, while praising the company’s previous acquisitions – particularly Deutsche Asset Management – and the now strong positioning of Aberdeen’s Far East Asian equity business.

‘Maybe it has been a case of being in the right place at the right time, but Aberdeen can continue as one of the leading asset managers and I think it has got a solid platform with a good mix of retail and institutional business. It will be in a good position going into the RDR,’ he said.

BP under review

His optimism does not extend to BP, however, which has proved a dampener on performance and is one holding currently under review.

‘Unfortunately it is under review. We will look to see how the Russian situation pans out,’ he said. However, he supports management’s decision to halt the TNK joint venture – pointing out that shareholders have made money from the project.

In contrast to his outlook on the oil major, Chillingworth remains positive on development and exploration stock Tullow, which he has held for three years.

‘We would always be nervous about buying a medium-sized oil company, but this has definitely delivered for us,’ he added.

He is bullish on Booker, having made four times the fund’s initial investment on the stock, and is also happy to sit tight with the fund’s investment in Daily Mail & General Trust, which he has held for four to five years.

Although the company has had its challenges, Chillingworth is supportive of the new management team and positive about their decision to focus on the business-to-business part of their operations.

‘The Daily Mail is shrinking as a percentage of its overall business. It is now a business-to-business business rather than a newspaper business,’ he said.

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