WEALTH MANAGER CIT YWIR E . C O.U K / W M I S S UE 4 1 7 • 2 6 OCTOBER 2 0 17
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Walker Crips’ Andrew Powell & Bill Newton on bringing the human touch to Epping
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BUSINESS & COMMUNITY
CITYWIRE WEALTH MANAGER • 26 OCTOBER 2017
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Walker Crips’ And & Bill Newton on human touch t JOSHUA THURSTON
jthur
CITYWIRE WEALTH MANAGER • 26 OCTOBER 2017
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ps’ Andrew Powell ton on bringing the touch to Epping
ON
jthurston@citywire.co.uk
BUSINESS & COMMUNITY
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BUSINESS & COMMUNITY
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CITYWIRE WEALTH MANAGER • 26 OCTOBER 2017
iven it is in Zone 6 and only a
think the general interest in doing advisory-
autonomy to run the business the way
stone’s throw away from
type business was waning – that is
they wanted to run it.
London, one might ask why
something that we’ve seen a lot.’
With Powell born and bred in Essex, and
Walker Crips needs an
The pair also felt the investment services
Newton now also living in the county, being
Epping branch. Office
being offered by the big banks to mid-range
able to base the office in Epping felt to the
principals Bill Newton and Andrew Powell
clients had become homogenised and
pair like an extension of that autonomy.
say they saw a gap in the market for
automated, without even a direct line to an
investors who would rather not spend half
investment adviser or discretionary manager.
although it is the Epping office we are really
At the other end of the spectrum there are
targeting wealth in Essex and Hertfordshire,’
an hour on the Central line, however. The duo left Barclays Wealth for Walker
‘We set up in the summer of 2016,
robo-advisers which he sees as really
says Newton. ‘We see those as affluent
Crips in the summer of 2014, following the
targeting young investors and not filling the
places with lots of entrepreneurs and
path trod by their two colleagues Steven
gap left by the banks, Newton notes.
geographically it made sense for us from
Moss and Mark Entwistle – who also now work in the Epping office. ‘We came over about three years ago from Barclays. The four of us were the core part of the advisory dealing desk at Barclays,’
‘What we are saying is there are still a lot of people that want to invest with somebody they know. ‘We are trying to access these people who don’t necessarily do it all themselves online
Newton explains. ‘The driver behind the move was Barclays’ attitude – like a lot of the industry: the investment size and type they wanted to offer was changing. ‘Their minimums for investment were going to increase considerably, and also I
the perspective that we live there, so that’s good.’ Powell adds: ‘Epping is geographically nicely positioned between Hertfordshire and Essex and those areas have very good transport links for clients.
We are trying to access these people who don’t necessarily do it all themselves online, but perhaps don’t have half a million to invest – maybe they have a few hundred thousand to invest. We think that is a good area to target BILL NEWTON
‘People assume that because it is geographically very close to London people would naturally access the City, but we find clients are a lot more willing to go to an office locally rather than getting on the train travelling to London.’ Powell explains the further attraction of the two counties of Hertfordshire and Essex is a strong tradition of wealth creation and entrepreneurship. A lot of cash is made in face-to-face, relationship-led businesses he notes, and these clients prefer to be able to pick up the phone than having to interact with an algorithm. ‘They may be business owners, who don’t have the ability or time to invest, to research prospective investments. So that’s why we think they would want to speak to someone whose job it is to do the research and do the legwork behind the investment,’ says Powell.
CV BILL NEWTON
Newton explains: ‘There are some areas which have been very much disrupted by but perhaps don’t have half a million to
technology and inevitably in financial
invest – maybe they have a few hundred
services that’s happening, but there will
thousand to invest. We think that is a good
be a huge demand for people who want
July 2014 to date
area to target,’ says Newton.
to interact and talk through their
Walker Crips, investment director
somewhere where they could ‘hit the
May 2008 - July 2014
ground running’.
Powell explains they wanted to find
‘With that in mind, we wanted to go
investment decisions. ‘Business owners are used to making decisions and being heavily involved in their money. So they may be willing to give over
Barclays Private Bank, vice president
somewhere we felt was going to be more
discretionary powers to a manager, but they
suitable for clients and also the type of
also want to speak to somebody regularly
June 2005 - April 2008
business that we offered,’ says Newton.
about what’s going on and be kept abreast.’
SVS Securities, investment adviser
‘Walker Crips was a perfect fit, a 100-year-
Powell says: ‘As Bill says, they are very
old broker very much committed to
time poor because they are running their
investment management both advisory and
own business at the same time, so they want
discretionary.’
to interact with somebody they can trust and
He added the firm offered the duo the
feel comfortable with.’
BUSINESS & COMMUNITY
CITYWIRE WEALTH MANAGER • 26 OCTOBER 2017
This approach seems to be building momentum, raising £42 million of new client money in the last year to bring total assets under management to £280 million.
Britain on sale? By Bill Newton
‘It was a slow process because we only
CV
really used one avenue for marketing to
A large number of stocks that are
introduce ourselves,’ says Powell. ‘What we
highly exposed to the UK domestic
wanted to do first of all was slowly introduce
economy are currently trading at
ourselves to the area and to let people know
valuations close to the lows seen in
they don’t have to travel to London to meet
2009. Worries over the possibility
somebody who is engaged in the markets on
of a hard Brexit have further driven
a daily basis.’
underperformance against the broader
Newton chips in: ‘It was word-of-mouth
market. However, it is our view that
really. We actually won quite a few referrals
this actually presents a good buying
from existing clients who had friends and
opportunity.
ANDREW POWELL
family in that catchment area.’ established enough for them to start directly
implications of Brexit negotiations, and
July 2014 to date
marketing to business owners who will
it would be unwise to make specific
become their core client base.
predictions at this point. However,
July 2010 - July 2014
focus for new business. We are embarking
moments of extreme uncertainty, and
on a more direct marketing campaign, trying
with Theresa May and Jean-Claude
Barclays Private Bank
to approach business owners in the area
Juncker’s recent joint statement that
July 2008 - July 2010
over the next 12 months. I don’t see any
negotiations should ‘accelerate over
reason why we can’t pick up £50-£100
the months to come’ we would hope a
Henderson Rowe, investment adviser
million worth of assets in the next 12 months.’
clearer picture will start to emerge soon.
Currently, 10% of the office’s AUM is made
Chancellor of the exchequer Phillip
October 2006 – July 2008
up of clients from Essex and Hertfordshire,
Hammond believes that the economy
with the balance for London-based clients.
is set for a ‘super-surge of investment’
Newton and Powell are pushing to get that
once a deal is secured with the
figure up to between 25-30%, however.
European Union for a transitional
Walker Crips, investment director
SVS Securities, investment adviser
Now, Newton feels the office is
‘For us now, business owners are our main
Although both Newton and Powell
We wanted to introduce ourselves to the area slowly and to let people know they don’t have to travel to London to meet somebody who is engaged in the markets on a daily basis ANDREW POWELL
Hundreds of pages could be written about the possible results and potential
it is often advantageous to buy at
period after the UK leaves in March
obviously favour a personal touch, they
2019 and so we are looking to position
admit that the industry faces challenges from
ourselves ahead of any potential news.
rising costs and regulation. These pressures
Looking separately at sectors, we
are at least partly why firms are starting to
believe a number of prime London real
shed advisory services, but they are
estate investment trusts (Reits) look
convinced technology will answer some
cheaply priced, with big discounts to
back office issues.
net asset value and continued strong
This is one of the reasons the duo were
demand from Asian investors for
excited about the promotion of the firm’s
trophy properties, such as the
group managing director Sean Lam to chief
Cheesegrater building.
executive officer at the end of August, filling
General retail stocks look deeply
a role previously held by Rodney Fitzgerald.
discounted based on expectations of
‘Our new CEO comes from very much a
a collapse in consumer confidence,
sort of infrastructure technology background,
which we believe to be unlikely, while
so that’s very useful for us. The way to adapt
further strength in sterling against the
is through technology,’ states Newton.
US dollar could provide a significant
‘It is early days yet. But the fact that he
reduction in costs. Finally, large UK
has a very strong technical background, I
banks continue to see improvement in
think that is an indication of what we are
capital strength but the stocks appear
looking for in terms of adapting the industry
to be discounting a big drop in returns
and building systems that work for us. So I
due to Brexit worries and regulatory
think that is probably the main skill set he
concerns.
is bringing.’ l
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