Sustaining strong relationships
Alexander Hoare, Partner & Director, C Hoare & Co, answers questions about the bank's sale of its wealth management division to Cazenove Capital one year on
C. Hoare & Co. was founded in 1672 by Richard Hoare, at the ‘Sign of the Golden Bottle’ on Cheapside. The bank is still owned and managed with unlimited liability by the 10th and 11th generations of his descendants.
Last year, Cazenove Capital began a close working relationship with C. Hoare & Co. through the acquisition of its wealth management service. One year on, both businesses continue to benefit. Here, Alexander Hoare, Partner & Director, C. Hoare & Co., discusses the two businesses’ growing relationship.
Q: One year later, how do you think the sale went?
The sale was a success; feedback has been positive and both customers and staff moved across effortlessly. One customer commented: “the admin was smooth, the team the same and everything was seamless”.
96% of our wealth management customers transferred their investment portfolios to Cazenove Capital. This success is down to the shared values of the two businesses; values which formed the basis of the decision to develop a professional relationship.
Q: How do customers benefit from the move? Now, and in the future?
The range and depth of investment resources now available to those customers through Cazenove Capital and the wider Schroders Group will be of huge benefit to them in the long term. The sale has enabled us to focus and invest in our core banking business, ultimately benefiting our customers too.
Q: What differentiates C. Hoare & Co.’s banking service?
We keenly believe that an excellent level of service is only possible if you know your customer and we place an emphasis on personal service. Every decision is treated individually and with an understanding of complex cash flows and unconventional business structures. We also benefit from being relatively small, so lines of communication are short and decisions can be made quickly.
Q: What other services does the bank offer?
In 2011, we became the first UK private bank to set up our own donor-advised fund; the Master Charitable Trust (MCT). This is an umbrella charity, under which customers can set up their own sub-funds. These sub-funds broadly perform the same function as a foundation or a trust, but without the administrative burden. The referrals that the MCT has received from Cazenove Capital have been encouraging and the service has proved popular. We have overseen the giving of £29 million since launch.
Q: What has changed at the bank over the past year?
C. Hoare & Co. is often described as a modern bank with traditional values. The sale does not alter these values, nor does it change the nature of our long-term relationships. However, it has prompted a renewed focus on banking and high-end lending, as well as a review of other areas.
Q: What is next for the bank?
Challenger banks are on the rise, and this rise is welcome. Small, good quality competitors are a welcome boost to the London economy. The entire industry wrestles with regulation and invests in technological innovation.
Delivering excellent service is of paramount importance to us; so much so that we control the volume of new customers in order to maintain standards. An ideal customer is someone who shares the bank’s values and has the appetite to use our range of services, in particular banking and deposits. We are very much open for business.
This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.