Tatton Asset Management saw record inflows of £2.3bn in 2023/24 and put strong growth down to a 12 per cent increase in the number of financial advice firms served.
In a trading update today (April 16), Tatton said inflows were up 28.4 per cent on the previous year’s net inflows of £1.79bn.
Assets under management stood at £16.5bn at March 31, 2024 compared with £12.7bn at April 1, 2023.
In the year, Tatton added 106 IFA firm relationships, bringing the total to 975.
Founder and CEO, Paul Hogarth, said: “I am very pleased with this year’s results, especially when we consider the difficult economic backdrop our industry has faced over the last 12 months.
“We are delighted to have substantially exceeded our three-year Roadmap to Growth target of £15bn, with actual AUM/AUI (assets under influence) standing at over £17.6bn at the end of the year.
“The growth since we set this target in 2021 has been underpinned by £5.4bn of organic net inflows over the last three years.
“As a management team, we are excited about the future market opportunity and the continued growth and adoption of MPS as a core investment proposition by the IFA community.
“We look forward to announcing our new medium-term AUM/AUI target when we release the full year results in June.”
He added net inflows averaged at more than £230mn per month in the second half of the year.
Hogarth said the firm was “delighted” after Tatton Core Active was revealed as being the most recommended MPS in the first quarter of 2024 by Defaqto, moving to the top spot from being the sixth most popular investment management solution in 2023.
Hogarth added: “Our excellent trading performance is a testament to the overall quality of our long-term track record of consistent investment performance, and market leading customer service and communications, which when combined with our IFA distribution partnerships, continue to drive the success of the business.”
‘Expected drop in mortgage completions’
Paradigm, Tatton’s IFA support services business, participated in mortgage completions totalling £13.1bn.
This was down 9.7 per cent from £14.5bn in 2023, which the firm said was in line with expectations.
Mortgage member firms increased in the year by 9.4 per cent to 1,916 and consulting member firms were 424 at year end compared with 431 in 2023.
Hogarth said: “As with the first half of the year, the mix of completions shifted towards the lower margin products, but we maintain our view that overall, it has been a good and resilient performance in FY24.
“Paradigm Consulting continues to perform in line with our expectations.”
The group's full year results are expected in June 2024.
Last month, Tatton's chief commercial officer, Justine Randall, told FT Adviser about how the firm's new money market funds have been popular with advisers.
She said: "From a client perspective it is also great, it closely tracks the Bank of England rates.
"Advisers can use it as a temporary solution but we are seeing it used for decumulation clients."
tara.o'connor@ft.com
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