Some founders of companies, perhaps understandably, like to take centre stage and become the face of the business they have created. But Castlefield’s John Eckersley isn’t one of them.
When I arrive at the firm’s office in the heart of Manchester, Eckersley jokes that he’s “managed to spend 22 years avoiding any personal articles in the press”.
No pressure, then.
“I’m not naturally someone who likes to be at the forefront of things,” he admits.
I’m most proud of getting people into these specialist roles
Rather than enjoy the limelight, he prefers to take a back seat and put trust in the team he’s built around him over the past two decades.
The sustainable investment firm’s headcount has gone from two employees in 2002 to more than 50 today, so Eckersley’s method is clearly working.
“I remember one of my previous MDs saying to me, ‘You must never be afraid of employing people who are better than you or brighter than you,’” he says.
“A lot of people don’t do that because they feel threatened by them, but I really don’t feel threatened by that at all.”
In fact, Eckersley says his ultimate ambition is for someone new to come in and ask, ‘What does that old bloke in the corner do?’
“That would be a real victory, wouldn’t it? If nobody thinks I really do anything — that would be brilliant.”
From the outset, Eckersley didn’t want Castlefield to be all about him.
I’m not naturally someone who likes to be at the forefront of things
“I was offered 100% of the business, but it just didn’t feel right,” he tells me.
Instead, he opted for a 46% stake, while the rest of the company was owned by another colleague and a charitable foundation. The latter is still a shareholder to this day.
Eckersley now owns just 15% and, in his role as chair, is responsible for “making sure people are in the right position and doing the jobs they should be doing”.
This, he says, has been both his biggest challenge and his greatest achievement.
A challenge because Castlefield is what Eckersley describes as a “values-based business”.
He expands: “When I look back and think of what I’m most proud of, I think it’s getting people into these specialist roles.
I would like to think there are no barriers to people joining us — or, once they have joined us, to progress
“We have a pretty strong set of values as a business: long-term sustainable growth, independence and innovation, employee share ownership, and respect and responsibility.
“These are the four key values we use to recruit people.”
Employee ownership
Finding the right people is essential because Castlefield’s employees are not just the beating heart of the company — they also own a big chunk of it.
Every one of them, upon successful completion of their six-month probation, has the option to become a co-owner of the business.
Castlefield gives employees, through a tax-incentivised share plan, the opportunity to purchase shares in the company through the payroll. For every share they buy, the business gives them a free one in return.
AI will help reduce the cost, for people like us, of onboarding clients, and allow us to serve more people
Eckersley acknowledges that this style of employee ownership “is not always the easiest thing and obviously not for everybody”.
However, he says he often jokes that it is the key to world peace “because you are a group of people and, irrespective of what you believe in or where you come from, you are focusing on an aim that is of mutual benefit to everyone”.
He adds: “It’s an interesting dynamic, but it’s not without its challenges.
“You can be leading the business or, if you are a senior manager, leading a team, but the people you are managing also own your business.
“Sometimes you have to get people used to the idea that they have two roles: one as an employee employed to do things, and another as a shareholder.
“Sometimes they need a bit of direction on how to do that. The benefit, though, is that they are always involved in the key decisions that shape the future.”
Another advantage of signing up to the scheme is an annual employee ownership bonus, where everyone receives the same amount of money irrespective of where they sit in the business.
The FCA said we had a robust set of procedures in place
“We always ask whether people want it to be based on a percentage of their salary, and they always say no,” says Eckersley. “Which is quite nice — and a fairer way of doing it.”
Eckersley says he is also proud of how Castlefield has become a more diverse and inclusive employer over the years.
“I would like to think there are no barriers to people joining us — or, once they have joined us, to progress,” he says.
“I have learned that having different views around the table is a very valuable thing.
“I think a lot of strife in the world comes from people being disadvantaged and understandably upset about what they haven’t got compared to others.”
It took me until my mid-thirties to realise I wasn’t suited to working for anyone else
Castlefield has aimed to address this by speaking to schools in disadvantaged areas, telling them about the company and saying, ‘We are here and we would welcome you.’
“A lot of these people don’t necessarily think they’d be able to work in financial services, so it’s really important to give them the confidence to know that they can.”
Flying start
Prior to making the short trip across the M62 to Manchester, Eckersley started out in nearby Liverpool.
He graduated with a degree in accounting and finance, with an MBA specific to the financial services sector.
I think a lot of strife in the world comes from people being disadvantaged and understandably upset about what they haven’t got compared to others
In late 2012, he became one of the UK’s first chartered wealth managers, subsequently becoming one of the youngest-ever directors of Henry Cooke Group at the age of 27.
Eckersley joined the holding company of that business in his early thirties and later became the group’s managing director of fund management.
When the business was sold to Brown Shipley, he became the bank’s executive director and, later, chief investment officer.
“It was great,” says Eckersley. “I got paid well and travelled all over Europe.
“But it got to the point where I thought, ‘If I don’t leave now, I’m going to be here for my whole career.’
“It took me until my mid-thirties to fundamentally realise I wasn’t suited to working for anyone else, because I do like to be in control of my destiny.”
Eckersley says he had “done quite well” in his career to that point and was fortunate enough to be in a financial position to “take a gamble”. And that gamble has certainly paid off.
After he had left Brown Shipley on good terms, the firm was “gracious enough”, he says, to grant him permission to speak to a small number of clients.
A lot of [youngsters in disadvantaged areas] don’t necessarily think they’d be able to work in financial services
“Enough of them said yes to me and suddenly we had a business.
“We applied to the Financial Conduct Authority to start a new firm, managed to get that through in six months, and the rest, as they say, is history.
“It’s been quite a journey.”
Little touches
Through our conversation, it becomes clear that attention to detail is important to Eckersley — both in work and outside.
This is evident in the little touches adorning his office — from the portrait by a Danish photographer behind me to the Hornsea Pottery from which I’m poured a cup of tea.
He’s a lover of contemporary art and classical music, and is a keen collector of both.
“I’m a fan of the usual,” he says. “Mozart, Beethoven, Schubert.
“However, throughout my working life I have got involved with a number of musical charities, so I have been listening to a lot more contemporary music too.”
One of the charities he is involved with as a trustee is the endowment trust of the world-renowned Hallé Orchestra.
I have learned that having different views around the table is a very valuable thing
“I quite like having to understand the music rather than just listening to it. I play the same music a lot until I really understand it,” says Eckersley.
“I’m a particularly big fan of Hi-Fi — the idea that the music should sound like the band are in the room and not just a recording.”
Challenges ahead
Eckersley has seen a lot of change in the sector over the past 22 years at Castlefield — and, with regulation accelerating at pace, he expects to see much more in the years ahead.
One piece of regulation that will impact Castlefield is the FCA’s Sustainability Disclosure Requirements. The company was one of 12 firms the regulator selected for a deep dive when finalising the rules earlier this year.
“They basically said, ‘Send us everything you do,’” says Eckersley. “They wanted to make sure you’re not saying you do it if you don’t.
“We also had a three-hour interview with them where they asked us all sorts of questions.
I was offered 100% of the business, but it just didn’t feel right
“They came back and said we had a robust set of procedures in place, which was obviously very pleasing to hear and validation that we are doing what we should be.”
Another big challenge ahead, he says, is “providing advice to people who need it who don’t have the half a million pounds that goes with the fee that makes it affordable to provide it”.
The people with the least money, Eckersley argues, are often the ones who need the most complex financial advice.
Technology, in his opinion, “has got to be the answer” when it comes to closing this advice gap in the long term.
“Artificial intelligence will help reduce the cost, for people like us, of onboarding clients, and allow us to serve more people. That’s key to addressing this issue.”
Eckersley says keeping clients’ values aligned with those of Castlefield is important, but also a difficult thing to do at times.
One example he gives is from the start of the Russia/Ukraine war, when the price of oil and arms shares went “really high”.
One of my previous MDs said, ‘You must never be afraid of employing people who are better than you or brighter than you’
He says: “Some people were saying, ‘I made a mistake not investing in these,’ when the price shot up.
“But, if you really are driven by values and sustainability, you wouldn’t really be thinking you’d made a mistake, would you?”
Eckersley clearly still has a passion for what he does and a fire in his belly to keep bringing in the people who truly align with the firm’s core values.
Beyond life at Castlefield, he’s also a chartered fellow of the Chartered Institute for Securities & Investment.
For the time being, at least, the “old bloke in the corner” is going nowhere.
Snapshot
Hobbies: Listening to music, collecting contemporary art
Favourite film: Ronin
Favourite meal: Vegetarian curry (with a glass of wine)
Favourite book: I’m reading a lot by Michael Connolly and I also really enjoy the Rex Nero Wolfe series of books by Rex Stout
This article featured in the October 2024 edition of Money Marketing.
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John Eckersley’s story ticks all the boxes of the classic “values-driven” leader profile—building a sustainable investment firm while staying out of the spotlight and putting trust in his team. MM clearly loves painting these tales of humble leaders who claim they’re just here for the ride, all while ensuring their legacy and ethos are front and center.
But let’s have a closer look at Castlefield’s execution. They pride themselves on their employee ownership model and “strong values.” However, when you dig deeper—like checking their actual fund performance—you might raise an eyebrow or two. Take the Castlefield Sustainable Portfolio Growth fund, for example. On Morningstar, it’s got an AMC of 1.12%, which feels anything but fair. And as for returns? Well, they’re nothing to write home about.
In fact, if you compare it to Vanguard’s LifeStrategy 80, which has the same volatility and less drawdown, you’ll find that Vanguard’s offering has outperformed Castlefield’s by a staggering 35% over the last four years. So, when Castlefield waves the sustainability flag, the irony is hard to miss. Sustainable investment is about more than just branding; it’s about delivering decent returns at a fair cost. Otherwise, it’s just a case of preaching one thing and delivering another—like planting trees but cutting down the ones in your backyard.