Wealth manager celebrates record year, despite volatile markets

Tatton Asset Management, the Wilmslow-based investment management and IFA support services group, forecasts strong growth in line with the board’s expectations for the year to March 31, 2023.

The business will publish its final results on June 13, 2023.

A trading update has shown record organic net inflows of 15.8% in a challenging environment that have contributed to a strong performance in fiscal year 2023.

Assets under management (AUM/AUI) increased by 22.3% to £13.871bn. The number of active firms increased 16.5% to 869, supporting record organic net inflows for the year of £1.794bn, an increase of 15.8% of the AUM at the start of the year.

Net inflows in the second half of the year were £0.887bn, an average of £148m per month, maintaining the strong performance delivered in the first half of the year of £0.907bn.

These record inflows represent a 40.5% increase on the prior year net inflows. AUM/AUI was further increased through the acquisition of 50% of the share capital of 8AM Global in August 2022, contributing assets under influence of £1.136bn, which is an increase from the £1bn at acquisition.

Market performance over the year reduced AUM/AUI by 3.5% or £0.400bn.

Tatton said Paradigm has performed well with consulting member firms increasing to 431 (2022: 421) and mortgage firms increasing to 1,751 (2022: 1,674).

Paradigm Mortgages involvement in completions in the second half of the year remained strong at £7.2bn, despite rising interest rates and continued global uncertainty. This resulted in a record year for completions which totalled £14.5bn (2022: £13.2bn), a 9.8% increase on the prior year.

The group ended the year with cash on the balance sheet of £26.5m.

Chief executive, Paul Hogarth, said: “The group delivered another year of strong growth in what has been a difficult and volatile market environment for most asset managers.

“Against this backdrop we have increased our AUM/AUI over the year by 22.3% to £13.9bn, close to our £15bn target by the end of FY24 and with still a year to go.

“This year we are celebrating the 10th anniversary of the creation of Tatton and during that period we have been at the forefront of the MPS market and continued to champion the IFA. We have consistently grown, adding new firms and AUM annually, resulting in this year being our strongest ever and I now believe the MPS market has reached a point where it has truly come of age.”

He added: “In addition to the £1.1bn of AUI acquired with 8AM in August, Tatton Investment Management delivered record organic net inflows of £1.8bn, a 40.5% increase on the prior year and a 71.5% increase over the average of the last five years (five-year average: £1.046bn). It was even more pleasing that we carried the first half momentum into the second half of the year, ensuring we maintained consistent flows throughout the year as a whole.

“The market drivers remain unchanged and we will continue to invest to strengthen the team in order to take advantage of the sizeable opportunity for further organic growth in the years ahead.

“Paradigm has also delivered a good year with involvement in record mortgage completions of £14.5bn, despite a much more difficult market in the second half of the year. We look forward with confidence as we make further progress and continue to deliver against our strategic objectives.”