FINANCIAL OPPORTUNITIES 01223 52 2000
CANTAB ASSET MANAGEMENT
WWW.CANTABAM.COM
Fast growing company
Combining the best of Cambridge and London
Cantab Asset Management seeks top graduates Cantab Asset Management (‘CAM’) is a professional firm of independent financial planners and discretionary investment managers dedicated to the provision of best advice to private clients, pension funds, trusts and charities. We aim to assist each client to build their finances on solid foundations in order to achieve desired objectives. We invest in the full range of available investments including; collective investments, direct equities and bonds. As a graduate, you will get hands-on experience with our Discretionary Service. This means you will use your knowledge, update portfolios on a regular basis and take on more responsibilities as you progress through the firm. We are recruiting graduates interested in financial planning, investment advice and wealth management. Job Description This is a well-rounded role, involving both financial planning and asset management. Trainees will work in a team with a Client Director across advisory and discretionary services. As a graduate, your tasks will include; • training in client facing work • portfolio management training and implementation • investment research
Lay firm foundations for your career in finance • drafting investment proposals, reports and correspondence. The graduate scheme is designed to provide individuals with training in private client investment from both inhouse and external tutors. Trainees will work within a team and be expected to contribute to CAM from the start. Industry recognised exams are taken throughout the training period. Training takes two years to become QCF Level 4 qualified (CII’s Diploma in Regulated Financial Planning)
and, where appropriate, training may continue to becoming a Chartered Financial Planner (CII), Chartered Wealth Manager (CISI) or Chartered Financial Analyst (CFA). Individuals can expect to progress through the firm in the following years. Our graduate scheme will suit ambitious and hardworking individuals who are willing to invest the years of training required to develop the skills set which will provide for a long and successful career.
Our Advice Process The advice we provide is tailored to each individual client and their needs. We offer a comprehensive financial planning service, in addition to providing investment advice and portfolio management. As Independent Financial Advisers, we consider the whole of the market, both in terms of products and investments, thus ensuring that each client’s financial arrangements are the most appropriate ones available to them. We take pride in this personal approach and ensure that our clients’ needs are at the heart of our recommendations. The quality of our service is recognised by our Chartered Firm status awarded by the Chartered Insurance Institute. Establishing a Relationship The first stage is to assess a client’s current position, and understand what they want to achieve. Where appropriate, we use sophisticated lifetime cashflow modelling tools, which allow us to confidently make plans that take into account future lifetime events, which may have a significant financial impact. We take into account a client’s attitude to risk and capacity for loss alongside their objectives and discuss options with clients before proceeding with our recommendations for a financial... ...continued inside
Desired Skills and Experience Mathematical competence and accuracy A team player with excellent communication skills Diligence and attention to detail to produce high quality, error-free work Flexible and willing to learn a diverse range of skills Organisation and time management skills Conscientious in researching, writing and presenting material Self-motivated and enthusiastic An interest in financial markets Experience with software, ideally Microsoft Excel and Word Outgoing personality to engage with clients and prospects If you meet these criteria, we would love to hear from you. Please read on to find out how to apply.
Cantab Asset Management Ltd Independent Financial Planners & Discretionary Investment Managers 35 Hills Road, Cambridge, CB2 1NT T 01223 52 2000 8 Angel Court, London, EC2R 7HP T 020 3651 0570 W www.cantabam.com
The Company – Cantab Asset Management provides wealth management services to private clients, institutions and charities. It is headquartered in Cambridge and delivers a professional bespoke service to each client in accordance with their individual needs. In this growing company, trainees will be expected to make a real contribution to the business from the start.
The Role – is based in the company’s Cambridge office and involves working in both financial planning and asset management across advisory and discretionary services. Tasks will include drafting correspondence and reports, monitoring portfolios and meeting with clients (under supervision), and assisting with research into current and potential recommended investments.
The Training – Believing in the importance of professional d e v e l o pm e nt , CAM will support trainees to take i n du s t r y - re c o g n i s e d e x ams . All trainees will first take the Chartered Insurance Institute’s Diploma in Regulated Financial Planning (a QCF Level 4 qualification) and may then take further qualifications as appropriate.
Apply! Any degree discipline will be considered, but applicants should have, or be expecting, at least a 2.i. All applicants will have to take mathematics and general financial knowledge tests at interview. In addition, you will need to have a proven ability to work in a team and to produce diligent, error-free work. A professional attitude in the office and when meeting clients is essential.
Meet the Team David Saunderson Chief Executive
Training and Development
The application process
External training
Stage 1: Application Send your CV and cover letter to Lucy Breen (lucy.breen@cantabam.com). You should describe in the cover letter what you can bring to the role. Stage 2: Assessment Centre Numerical examination - no calculator permitted. Written examination - general working knowledge of the industry. Stage 3: Interview Depending on application volume this could be an individual or group interview. Stage 4: Final Interview You will meet some of the people with whom you would be working and we will describe the role to you in more detail.
Industry recognised qualifications: Training and development is an essential part of your career. Believing in the importance of professional development, we will support you to take industry-recognised exams. CAM sponsor you to take the Chartered Insurance Institute’s Diploma in Regulated Financial Planning, a highly respected qualification in the industry. CAM may also sponsor further qualifications such as the Chartered Wealth Manager or Chartered Financial Analyst (equivalent to a Masters). During your training, you will be given study leave and all the books, equipment and encouragement you need to succeed. Continual professional development: Once a week, a buffet lunch is provided and CAM hosts seminars by leading providers in the industry.
Internal training David has been giving investment and financial planning advice since 1979 as the principal of Saunderson House of which he was Chief Executive for twenty-four years and then subsequently with Cantab and its antecedents. David read engineering at Downing College, Cambridge and then qualified as a Chartered Accountant with Price Waterhouse in 1979. David serves as a trustee of several charities and enjoys skiing and tennis when time allows.
Training modules: Our team have developed training modules to help complete essential tasks. As they have been written internally, they are designed to meet your needs. Technology workshops: Weekly training sessions will train graduates to work with essential financial planning and asset management software. Development: CAM provides a supportive environment to help during training and professional growth. We aim to provide each graduate with the knowledge, insight and confidence needed to succeed and lead in the financial industry.
Graduate Mentoring Programme We know that the transition from student to professional life can be daunting, so here at Cantab you will have a graduate mentor. Your mentor will help you navigate the professional atmosphere and answer day-to-day questions. Our graduate mentors help to create a support network for you as you study and develop. Within a year, you may also be given the opportunity to become a graduate mentor to a new trainee.
Jeremy Davis Managing Director
Jeremy has been advising private clients and companies for many years and has been the Managing Director of one of the antecedent firms - 35 Finance. Jeremy read Natural Sciences at Magdalene College, Cambridge and holds a Ph.D in Genetics and Plant Breeding. Jeremy is a certified financial planner. Jeremy has been a financial adviser since 2000, having worked previously in South America and Africa for a research organisation belonging to the World Bank for twelve years and for Unilever for ten years. He is a Fellow of the Royal Society of Arts (FRSA) and enjoys sailing, music and gardening.
Mark MacLean Financial Planning Director
Mark has been advising private clients for twenty five years. After eleven years with Lloyds Bank, Mark worked as an independent financial adviser rising to be a Private Client Partner at Broadstone (formerly BDO Investment Management) where he chaired the Quality and Advisory Committee. Mark is a Chartered Financial Planner and a Certified Financial Planner. He chairs the Essex region of the Personal Finance Society. Mark enjoys long distance running and watching football.
Team Working
Our Advice Process continued... ...plan, supported by investment advice to ensure that expectations are realistic. Research and Analysis Our experienced Investment Committee meets regularly to discuss economic conditions and provide guidance as to how this should impact on our advice. We use a suite of resources to monitor and research investment options. Our risk-rated model portfolios are structured and managed by our in-house investment team under the guidance of the Investment Committee to meet various core investment strategies. Each Client Director, together with his/her team, follows our laid down financial advisory process and is responsible for the advice provided to clients. The investment team provides research and valuable insight into the investment markets which guide the recommendations to clients for their portfolios. Managing Risk There are many types of investment risk, and whilst effective financial
planning may manage or minimise overall exposure to risks, they cannot be avoided completely. Indeed, it may be that trying to avoid or minimise certain types of risks leads to greater exposure to others. For example, one may avoid putting capital at risk by holding cash on deposit, but there is a real risk of high inflation and low interest rates eroding its purchasing power. There is a trade-off between risk and investment return. Therefore, it is important to understand that taking appropriate risks is a part of effective financial planning. One way in which we manage investment risk is via asset allocation. The asset allocation decisions on the model portfolios are formally made on a quarterly basis as a result of the deliberations of the Investment Committee and adjusted as appropriate in monthly reviews. Diversification within portfolios to include equities, fixed interest bonds, property and other asset classes reduces the risk of putting all one’s eggs in one basket. Holding a geographical spread of
equities allows investors to benefit from exposure to developing markets around the world as well as more developed markets such as the UK and the US. Furthermore, whilst blue chip FTSE 100 companies can provide a strong source of dividend income, mid cap and smaller companies - such as those listed on the FTSE 250 and their global equivalents - have historically offered greater growth potential. As with investments in general, asset allocation should be thought of as a long term strategy, with adjustments to take account of market conditions being made on a more gradual basis. Investment Structures Our core approach, appropriate for most investors, is to use collective funds such as unit trusts and OEICs. However, we also advise on investment trusts and direct holdings, such as individual equities, bonds and gilts. Since investment trusts usually trade at discounts or premiums to their net asset value, these can be more volatile than open-ended funds, but this can also represent an opportunity to achieve
a higher return. As such, investment trusts usually require more frequent reviews. Similarly, individual equities are more volatile than collective funds and require regular in-depth reviews. For these reasons, including investment trusts or direct equities would usually be more appropriate for larger investments. Another major consideration is the structure of investments from a tax perspective. There is a variety of different tax wrappers, each of which has a different treatment for tax purposes. Depending on the wrapper, gains may be liable to income tax, capital gains tax, be taxdeferred until a later date, or tax-free. Furthermore, it can be advantageous from a tax point of view for spouses to consider whether to hold investments jointly or individually. Pension legislation remains complex and subject to on-going change. This highlights the value of conducting thorough financial planning reviews for individual clients on a regular basis.
The First Year with Cantab Asset Management What you can expect to learn in your first year with us.
FAQs Starting salary:
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Graduate Programme Starts:
Competitive.
Module 1: Introduction to CAM and Basic Skills
What are the application deadlines?
Module 2: Reviewing Client Portfolios
Graduate programme: apply by 31 July.
Module 3: Portfolio Management and Investment Research
Internships: application dependent.
Review your progress
Do I need any prior experience?
Sit first exam
It is not essential but it may help
Module 4: Client Relations and Business Development
Meet the graduates Julia Jones Trainee Financial Planner Studied Natural Sciences at Downing College, Cambridge
your application. If offered a position, when should I expect to start?
Module 5: Investment Platforms
September.
Sit second exam
Do I need to revise for the
Module 6: Financial Planning Reports
Assessment Centre? Reviewing your knowledge of the
Sit third exam
industry would be helpful for the
Review your progress
calculator for the numerical test at the
interview. You are not permitted a Assessment Centre; practising long hand mathematics would be sensible.
When I graduated, I wasn’t sure what I wanted to do. I knew I wanted to continue working towards qualifications to keep my options open as well as keeping a good work/life balance. I also wanted to find a job that was both analytical and client facing. After researching career advice websites, financial planning seemed like a good route to investigate. My role ranges from client meetings to administrating transfers, writing reports to researching funds. Some days, I will be writing valuations for our clients to update them on their investments, or gathering investment information for reviewing our recommended funds. On others I will be writing minutes at client meetings, reviewing portfolios to decide where to invest cash or placing deals. In my own time, I study for my CII financial planning exams. CAM encourages graduates to ask questions and allows them to see all sides of financial planning.
Acquiring industry recognised qualifications
Q&A with Cantab Asset Management’s Investment Team The Investment Committee of a major institution asked CAM questions after a recent presentation, some of which may be interesting to our clients and prospective clients: 1. Help us understand your investment approach: Do you work top down or bottom up? Geographically? Sectorally? What is your current asset allocation? CAM establishes model asset allocations using a top down approach during the quarterly Investment Committee meetings. During monthly Investment Committee meetings the focus is more on bottom up fund and stock selection. Each portfolio is designed to meet the needs of the client. Often the markets do not follow economic data, as the good GDP results in the UK, but poor returns from the FTSE this year demonstrate; or vice-versa, the disappointing Indian GDP last quarter but exceptional returns. Profitable ideas are found across geographies, such as identification of sectoral trends in response to demographic trends, for instance, with healthcare. 2. What would you recommend for us as an asset allocation? CAM will recommend an asset allocation when it has fully understood and analysed the needs of the Client, the returns required and the attitude to risk – including tolerance, capacity and need. 3. In the interests of cost minimisation: how often do you trade? As little as possible, considering the stock and the client. 4. We discussed the issue of a major historic shareholding... into what do we diversify? CAM would typically recommend diversification into a wider spread of equities and other asset classes, corresponding to the client risk profiles. 5. How does your investment performance compare with others? What is your 10 year track record? In our advisory capacity, we have experience in UK share selection going back over 10 years for individual clients, rather than running a generic UK equity fund. According to the FT Wealth Manager Survey 2014, CAM would be placed in the top 10% of wealth managers in the UK.
6. How do you explain downside risk? The downside risk refers to the largest fall as a percentage (peak to trough) over any period during the last 3 years.
Sam Hardy Assistant Financial Planner Studied Philosophy at Trinity Hall, Cambridge
7. How do we understand the Sharpe ratio? In 1966, William Sharpe defined a “reward-to-variability ratio”, later named after him. The formula relates to the asset return in excess of the ‘risk-free’ return, over the standard deviation of the asset. Negative numbers represent performance below a risk-free rate. Government bonds are normally taken to be ‘risk-free’. 8. What would you have done in 2007 to our portfolio? At later points in the economic cycle CAM would recommend a shift to defensive (from cyclical) stocks. Clients have a long term need for returns to meet their liabilities, resulting in a desire to stay invested. Timing the markets is difficult and there are potential costs to not being invested. CAM observes a variety of factors, such as when the yield curve inverts, which is a sign of impending recession, based on direct experience of investing in Treasury bonds. As a result, CAM increased the Fixed Income exposure before the crisis, which helped to counter-balance equity performance. 9. How do you research the market for niche fund managers? CAM uses quantitative and qualitative approaches. CAM conducts its own due diligence on individual stocks which allows additional insight to be gained into the way that fund managers are working. A variety of research tools is used to identify funds with good metrics. Meetings are held regularly with fund managers to understand their approaches. CAM performs various in-depth analyses, looking not only at returns (in absolute terms), but also risk-adjusted returns, with comparison of risk metrics such as Sharpe and Sortino ratios. Comprehension of the composition of the fund is important to understand the drivers of performance, for instance, does a European fund have undue exposure to the banking sector. Emphasis is placed on managers employing clear, transparent and consistent strategies. 10. You said that you are interested in innovative businesses but also say a portfolio of blue-chips has outperformed? In the main CAM invests in blue-chips, but includes some mid-cap and smaller quoted businesses. It is important to have an appropriate balance between different market capitalisations; for example since 1986, the FTSE 250 has achieved double the returns of the FTSE 100. However, the importance of dividends in providing a relatively consistent income cannot be overlooked.
After graduating I initially began work as a trader. However, I was more attracted to longterm, client-focused investment and so moved to Cantab Asset Management. My role covers both discretionary and advisory work: I review client portfolios, execute trades, correspond with clients and liaise with other professionals. I also research potential investments to determine whether they are appropriate for our model portfolios. I am studying for the Diploma in Regulated Financial Planning (awarded by the Chartered Insurance Institute). Cantab Asset Management supports this study by providing textbooks and study leave. For those looking to get into financial planning any degree subject is acceptable; more important than a particular subject is that they demonstrate an analytical mind combined with a clientfriendly personality and strong work ethic.
Discretionary Management Service Cantab Asset Management provides a Discretionary Management Service for clients as it strives to further improve portfolio performance, reduce administration time for clients and facilitate the integration of financial planning and investment management. The mission of the firm is to assist private clients, trusts and charities to create, preserve and protect capital to meet their needs and objectives. The investment philosophy of the firm is: 1) To achieve diversification through a range of asset classes. 2) To manage the investment risk by proportionate use of the asset classes. 3) To meet objectives through the selection of appropriate fund managers. 4) To review investments regularly for acquisition and for sale. As a firm, we seek to employ the best people, to use the best systems and to maintain the highest professional standards.
Bespoke Client Portfolios Each client portfolio is bespoke but with the nature of our research and investment process there is a high level of commonality between portfolios. We invest predominantly in collective investments including unit trusts, investment trusts and ETFs. However, we do invest also in individual ordinary and preference shares, gilts and corporate bonds. We take on equity portfolios for management although we do this on the basis that over time these portfolios will be converted to include collectives to increase diversification and reduce risk unless specifically requested to do otherwise by a client. For existing portfolios, we rationalise holdings (tax permitting) focusing on larger capitalisation UK equities. We do manage portfolios to take advantage, where applicable, of the annual CGT allowance. We manage funds within pension fund wrappers such as Self Invested Personal Pensions and Small Self Administered Scheme portfolios. We also manage funds within ISA wrappers and offshore bonds. We use a range of indices to compare portfolio performance, many of which are considered industry standards. Within this range, we work with our clients to select the most appropriate indices for each individual portfolio. Each client has a Client Director in the firm
and is introduced to the Director’s staff team as appropriate. Client meetings are usually held at least once per year and formal valuations with our investment commentary are provided every six months. A monthly investment note is posted on the website.
Investment Governance The firm has three client teams with support services from Investment Research, Compliance and Operations. The Chief Investment Officer has worked at the firm (and its antecedent firm) since 2002 and has been working with the Investment Manager since 2006. Asset allocation is determined by the Investment Committee which meets formally every quarter. Equity valuations, bond pricing, interest and exchange rate outlook, unemployment and GDP outlook are among the factors that are considered during the meetings. The relative merits of each asset class and geographical region in relation to one another are reviewed in order to decide on the asset allocation strategy. In response to rapidly changing market conditions, ad hoc meetings are held as necessary. Meetings are chaired by the Chief Executive and membership comprises the Chief Investment Officer, all Client Directors, the Investment Manager and two senior analysts. Our risk approach is based upon asset allocation, diversification within portfolios and position sizing within portfolios.
Investment Process Our investment process, based upon our philosophy, can be broken down into four component parts: 1) Macro strategy which leads to the asset allocation decisions 2) Securities and fund research which leads to the fund, equity and bond selection decisions 3) Assessment of client objectives, attitude to risk and tax implications which leads to portfolio construction decisions 4) Review and monitoring of investments on an on-going basis Our in-house research forms the cornerstone of our investment process and is the starting point for building client asset allocations and the eventual deployment of capital. In the fast-moving and volatile macro-economic environment of the
Cultivating Assets twenty first century, it is crucial to stay on top of market-shaping events. The first stage of this process is the formation of a broad top-down macroeconomic view which we use to frame the relative attractiveness of a range of asset classes. The investment management team meet formally on a regular basis in order to discuss views on recent macro events and data, and to determine how these changes should be addressed within our asset allocation decisions. Once we have adjusted our asset allocation decisions, we are then able to fill out these allocations using the universe of funds that we have at our disposal. Our independent status and size means we have unfettered access to the full range of funds and other securities that are on the market. The process by which we choose funds from this point takes in a whole range of considerations: balancing factors such as risk/ return calculations, liquidity constraints, manager track record, availability and fees. These processes are fluid and continuous, giving us the scope to make acquisitions and disposals in a pro-active, not reactive way, and we aim to be able to anticipate and benefit from important market turning points instead of being merely swept along by them.
Investment Monitoring
As the investment team spends the majority of its time researching fund managers and asset class opportunities the team is in a constant cycle of assessing and reviewing investments. The high levels of commonality amongst our portfolios mean that we are able to make changes quickly in response to changes in the economic environments or at the individual fund level. Within client portfolios, we do take some currency risk in that certain overseas holdings may be denominated in foreign currencies. However this is undertaken where we have strong views based upon our economic research. Ultimately, the majority of our clients have sterling based liabilities and it is unlikely that any more than 25% of a client portfolio would be invested in nonsterling denominated assets. Currency selection and the decision to hedge an investment is made during the asset allocation process, for example we may wish to expose a client to the US equity markets but not the US dollar. In this situation, we would buy a fund which actively hedges its holdings back into sterling. In the main, we manage portfolios whose base currency is sterling. The vast majority of our clients are UK-centric investors and as such we dedicate our time and resources to researching sterling assets which will best meet their needs.
Investments are monitored on an on-going basis.
Steering a course for a successful career? Apply for internships and graduate jobs at Cantab Asset Management
www.cantabam.com The opinions expressed herein are those of Cantab Asset Management Ltd and should not be construed as investment advice. As with all equity-based and bond-based investments, the value and the income therefrom can fall as well as rise and you may not get back all the money that you invested. The value of overseas securities will be influenced by the exchange rate used to convert these to sterling. Investments in stocks and shares should therefore be viewed as a medium to long-term investment. Past performance is not a guide to the future.
Cantab Asset Management 35 Hills Road, Cambridge CB2 1NT
8 Angel Court, London EC2R 7HP
Authorised and regulated by the Financial Conduct Authority.