Your Industry  

Charles Stanley increases discretionary FUM

Higher levels of funds under management and an increasingly confident market have helped lift both fee and commission income levels, Charles Stanley’s results reveal.

Charles Stanley Group’s revenue for the three months to 30 June 2013 was 31 per cent higher, at £36.9m, than the same period a year ago.

Total client funds stand at £17.66bn for the three months ended 30 June 2013, a decrease of 0.3 per cent from the figure of £17.72bn at 31 March 2013.

Article continues after advert

Within this figure discretionary managed funds increased by 1.4 per cent from £6.38bn to £6.47bn reflecting a net inflow of funds during the period.

Over the same period the FTSE 100 index and the Apcims Balanced Portfolio index decreased by 3 per cent and 2.1 per cent respectively.

Management said increased levels of funds under management and the strong performance of the market for most of our first quarter helped drive fee income upwards by 30 per cent compared with the same period last year.

Fee income represented about 59 per cent of Charles Stanley’s revenue over the period.

Management also said the results had been impacted by the fact in January 2013 a new division was created in Charles Stanley Direct.

This division provides a direct to-client investment service.

The revenues for Charles Stanley Direct are lower for the quarter due to an introductory offer, offering a reduction in fees for existing clients to transfer.

This process has now been completed and since Charles Stanley Direct was launched, 1,282 new accounts have been opened and AUA are now more than £530m.

James Rawlingson, finance director of Charles Stanley, said: “It is pleasing to note that the progress started in the second half of last year has continued.

“Though there are still significant challenges that lie ahead for the wealth management industry, our optimism for the remainder of the year is still a touch higher than it was this time last year.”