Mattioli Woods has seen its total assets under administration and advice rise 20 per cent to £3.6bn in the year ending 31 May 2013, primarily due to additional funds under trusteeship of £302m acquired with Ashcourt Rowan’s pension business.
Mattioli Wood’s trading update, published today (27 June), highlighted that the growth in funds was also due to £113m secured on its appointment to the Pilgrim Sipp, coupled with net organic growth of £107m in Mattioli Woods’ core pension business.
The group also announced that it has been appointed to operate the HD Sipp, which is under investigation in connection with the failed Arck LLP investment and is estimated to have around 40 active members.
Bob Woods, executive chairman, said the launch of its portfolio management service in the first half was an important step forward in providing wider wealth management services to its clients.
Mr Woods said: “Our discretionary proposition has attracted over £180m of assets under management since 1 September, increasing our recurring revenues and delivering better service to clients.
“The [Retail Distribution Review] has changed the nature of our investment advisory revenues and I believe the move from provider commissions to adviser fees based on assets under advice enhances the quality of our earnings. The fall in Libor rates over the last 18 months will lead to lower banking revenues in this new financial year, but I expect this to be partially offset by demand for advice on investment into other asset classes.”
The government recently announced the end of consultancy charging in auto-enrolment schemes and it plans to publish a consultation this autumn, including proposals to cap default fund charges in defined contribution schemes.
Mr Woods said: “Although there is some uncertainty around the impact of these proposals, there is clear demand for progressive employers to create cost-effective and engaging employee benefits plans. Following the launch of our flexible employee benefits service Create in March 2013 we are well-placed to take advantage of these new opportunities.
“The development of the group’s wider capabilities, combined with changes in our key markets, make this an exciting time. We continue to explore further acquisitions. Equally, I expect our ability to sustain strong organic growth through cost-effective distribution to be a key differentiator. I have enormous conviction in our strategy and look forward to us delivering first class services to our clients and further sustainable growth to our shareholders over the coming year.”
