Charles Stanley is one of the UK’s leading independently owned, full-service stockbroking, and investment management groups. In December 2013 they purchased a finance management group, Evercore Pan Asset Capital Management Limited, for a partially deferred payment of up to £2 million. Pan manages in excess of £500 million with respect to pension funds, charities, and corporate and private clients. It specializes in providing passive investment management within market industries which it positively selects, which brings a fresh sizing to the groupings investment management knowledge and to the range of investment opportunities available to their existing clientele.
The group have incurred significant additional costs within the last year consequently of RDR conformity requirements, updating systems to offer an improved service to clients and combined with the roll-out of the diy system, Charles Stanley Direct (CSD). The business issued a trading declaration earlier this week caution that revenues are likely to be below prior anticipations.
- 6 years back from Cornwall, land of the eternally youthful mind
- Teach Your Expertise
- 6 months back from Yorktown NY
- 3rd week (15 to 19 July)
This experienced a knock on impact to the talk about price which includes been on the glide for much of the year. That said, client money has increased to £20.5bn within the last 5 weeks and CSD has increased property by 18% to £0.9bn. This talk about has been on my watch list for over two years, which means this is no impulse decision. Just 9 weeks back the share price acquired reached over 500p – the current dip to around the 300p mark has provided an opportunity to pick up my usual ‘half’.
One of the factors for my purchase (and Hargreaves Lansdown recently) was the potential to utilize what I believe will be a growth area in the arriving years – that is the self-directed in investor. The roll-out of RDR has no doubt made the provision of financial advice and personal investment services more expensive to provide.
This increasing cost can make advice-led service unaffordable and/or inappropriate for clients of more humble means with smaller portfolios. CSD offers the usual working a/c, ISA & Junior ISAs and SIPPs. Therefore with, for example, a range of low cost trackers, the full total costs of running a well-diversified £25,000 portfolio could be achieved for well under £100 p.a. With larger portfolios Obviously, the percentage model is not attractive.
Of course, pursuing an effective caution on the existing year’s profitability, the talk about the price could see further weakness and I’ll await the interim results and probably the full 12 months results next yr before considering increasing my holding. I do however feel reasonably positive on the long-run potential clients because of this small cap.
It could then sell EU Bonds, raising all the amount of money needed on global Capital Markets to refinance, and recapitalise European Banks, and State coffers. Essentially supported by the energy of the German State such Bonds could be sold at prices not much less than current German Bunds. It could then put in place the types of policies, day Marshall Plan just like a modern, that is required to spend money on and restructure European capital, in the periphery particularly, to compete globally.
But, that may be done as far as Britain can be involved too also. If the IMF, for example were to stiffen its latest report, and to say that global financial conditions called for a global response from Governments, it might sanction an idea B, based on fiscal expansion in the UK.