CLOSE BROTHERS (CBG) £15.29
Merchant bank Close Brothers is often perceived as a good barometer of the health of the UK economy thanks to its lending to small businesses. Something of an all-rounder, the company has operations across lending, deposit taking, wealth management and securities trading.
Wesley McCoy, fund manager of Standard Life Investments UK Equity Unconstrained (B79X967) flags the company as a good one among UK shares.
He says: ‘The business specialises in taking the right risk at the right time. It sailed through the last crisis and has already shrunk lending in the hottest unsecure areas. This leaves it poised to perform strongly when others give up. Exactly the kind of long-term positioning that can stand the test of a rockier political and economic climate. The market thinks short term, Close thinks longer.’
The shares trade on 11.1 times forecast earnings for the year to July 2019.