Firing line  

Castlefield founder John Eckersley on stepping back

"We are always interested in the right individual and the right business. In fact, I would like us to be almost like a consolidator in the ethical and sustainable space. We are the logical home for such businesses - we really are. 

However, he said he does believe the company could double its assets under management, which are approximately £400mn. The founder said: "Let's say we could acquire another £400mn which is out there in the hands of three or four firms that we could talk to."

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Background

Eckersley spoke of how, while he was at Brown Shipley, he "had an itch to go work for myself - an itch I was able scratch and to leave on good terms.

"I had a strong desire for responsible investing and I wanted to focus on the charity clients that I had fostered over the years."

Originally, his stake in Castlefield was 50 per cent; another colleague had 25 per cent and 25 per cent was owned by a charitable foundation.

Now, approximately 47 per cent is in an employee share ownership trust, 26 per cent owned directly by employees and 21 per cent by the foundation.

He strongly believes in the principles of 'HAWD' - telling everyone in the business 'How are we doing?", which is important given how many employees have their interests aligned with those of the business.

The company has been on selective acquisitions in the past. In 2011, as FTAdviser's former sister paper Financial Adviser reported at the time, Castlefield bought Gaeia, and then purchased Barchester Green in 2014.

It currently has approximately £401mn in assets under advice.

Approximately £223mn of that money has an advisory relationship attached to this, and 75 per cent of that (£167mn) is within Castlefield's own funds.

"Clients come to us for their needs, and that might be one-off advice, or ongoing advice, or investment management.

"We've got the Prod-style segmentation down pat. And we send all our advised clients an invoice every year to show them what they have been paid for and remind them what we can offer."

The discretionary management fund size of the business is also growing. The company has approximately £345mn in DFMs and 15 people working on this side of the business. 

He said the investment management side of Castlefield works hand-in-hand with the financial planning side in terms of the commitment to those seven principles. 

Eckersley added: "Obviously we have done a lot of thinking about this. 

"We offer values based-investment products and advice on one hand, but we also hold ourselves to account as a values-based investment business. 

"It's not just a product line but what we do. You can buy an ESG fund from anyone but ESG is what we do - our principles are embedded in our people, and clients really get that."