Shares - - TALKING POINT -

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.

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