In a trading update published today (1 December), Mattioli Woods revealed the group’s total client assets under management, administration and advice reached more than £6.5bn at 31 October 2015.
This is a sharp increase of £1.1bn compared to the end of May this year where AUM totalled £5.4bn.
During the first five months of this financial year, Mattioli Woods won new wealth management cases, including self-invested personal pension (Sipp), small self-administered scheme (Ssas) and personal clients.
For new business, its total assets under management, administration and advice reached more than £145m, up 13 per cent on the £128m in assets won in the equivalent period last year.
The company recently bought two financial planning firms, Boyd Coughlan and Taylor Patterson.
Ian Mattioli, chief executive of Mattioli Woods, said the two businesses are “integrating well and contributing positively to the group’s trading results since acquisition”.
Despite volatile investment markets slowing growth in parts of the Mattioli group’s investment revenues, it said its subsidiary Custodian Capital has raised over £57m of new monies since the start of the period as discretionary investment manager of Custodian real estate investment trust (Reit).
As DFM, Custodian Capital receives annual management charges based on the net asset value of the investment company, boosting the group’s recurring revenues.
“In our employee benefits division, the shift to a fee-based proposition is being well-received by corporate clients,” said Mr Mattioli.
“We anticipate the forthcoming abolition of provider commissions in April 2016 will further change the revenue mix, as the market adjusts to accommodate another government-led initiative.
“The latest changes in pensions legislation have enabled us to take our wealth management services into more boardrooms, as we extend the reach of our proposition.”
Mattioli Woods said further consolidation in the Sipp market appears likely, with increased regulatory capital requirements for Sipp operators coming into effect from 1 September next year.
“The balance of the funds we raised by way of a placing with institutional investors in June 2015 provides the group with the flexibility to make further earnings-enhancing acquisitions,” said Mr Mattioli.
“We continue to enjoy strong demand for advice at a time of great change in both investment markets and the pensions landscape.
“Current trading is in line with the board’s expectations and we remain confident in the outlook for the remainder of the year.”
He added: “Our focus is on ensuring we continue to address our clients’ changing needs and our ambition is to see our brand become an even stronger force in the UK financial services sector.”
Mattioli Woods said it will release its interim results for the six months ending 30 November 2015 in February next year.