Tatton’s assets under management increased by 19.8 per cent during the six month period to the end of September due to “the growing maturity of the model portfolio services market”.
In its interim results, the investment management and investment financial support services group revealed that its AUM had increased to £14.7bn compared to the same period the year before.
This was an increase on the £12.3bn that was recorded for the six month period ending September 30, 2022.
Tatton chief executive Paul Hogarth attributed this increase in AUM, and the other positive results included in the interim results, to the growing maturity of the MPS market.
MPS
“I think, with consumer duty, there will be lots of people actually focusing on MPS because of the price and value situation that you get with the service,” he stated.
He added that there’s now more than £100bn in MPS and that’s expected to double over the next 4-5 years.
Additionally, the results specified that during the six months period Tatton has seen an expansion in its range of propositions, including to its MPS range.
As part of this expansion Tatton launched a new risk rating within its MPS range - the money market risk profile
This risk profile offers clients the potential to receive a return on cash that tracks the Bank of England base rate more closely than most instant access UK bank deposit accounts.
Other positive results
Tatton also saw its profits increase by 11.2 per cent to £8.8mn from the £7.9mn that was recorded for the same period in 2022.
Meanwhile Tatton’s revenue increased by 9.9 per cent to £17.506mn, a rise on the £15.9mn that was recorded in the same period last year.
Organic net inflows were also found to have increased, rising to £910mn compared to the £907mn recorded in 2022, representing an annualised increase of 13.1 per cent of opening AUM with an average run rate of £152mn per month.
Hogarth said he was “absolutely delighted” with the results and that the figures were “exceptional”.
This positivity was due to the fact that volatility “continued to be a challenge” in the market and yet the company was able to produce positive results regardless.
“When you’re working in the markets that you work in, what we’ve achieved across the board is absolutely phenomenal,” he explained.
Looking ahead
Looking to the future, Hogarth said Tatton has “quite a positive outlook” as it has been “consistently trading at these levels” and believes it will continue to do so for the rest of the year.
Additionally, Tatton stated that it expects to exceed its £15bn “Roadmap to Growth” strategy by March 2024.
tom.dunstan@ft.com
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