Close Brothers has reported a 60 per cent increase in inflows into its asset management business for the six months to January 31 this year.
The firm said its asset management arm saw net inflows of £310m for the period, up from £195m a year previous, as a result of lower outflows.
Total client assets dropped from £10.2bn to £9.1bn, however, largely due to a disposal of £1.3bn in corporate assets as well as negative market movements.
Adjusted operating profit rose to £8.4m, up from £5.1m, while its revenue margin rose from 86 basis points to 90bps as a result of the lower margin asset disposal.
Close said it expected continued net inflows in future, pointing to the government’s previous pension changes as a significant growth opportunity. It said it was investing in training for its advisers to ensure “we provide the best advice to our clients as these changes take effect.”
Across the business as a whole, Close predicted a “satisfactory” performance over the full year. Headwinds included the lower operating profit reported by broking arm Winterflood - down from £10.3m to £6.8m.
Adjusted operating profit for the group as a whole rose 2 per cent to £111.2m for the six months to January 31.
