AssetCo’s pre-tax profit has soared in 2021, a year which the group’s chairman Martin Gilbert has described as “transformational”.
The company’s profits rose 373 per cent to £16.1mn in the year to September 30 2021, up from £3.4mn the previous year, according to a statement to the stock exchange today (February 18).
Gilbert said: "The company is being transformed and has successfully put in place some of the building blocks required for it to become a 21st century asset and wealth management business that delivers for investors and makes a difference."
Campbell Fleming, chief executive officer, AssetCo, said the group was addressing the “structural shifts” in the asset and wealth management industry through acquisitions and investment.
To address these shifts, Fleming said the group had invested across several areas, including: active management in public and private markets, high growth thematic investing, and ESG and digital solutions.
Last year, AssetCo acquired Saracen Fund Managers as well as stakes in Rize ETF and investment and advisory platform Parmenion.
It also owns 5mn shares in River & Mercantile, and its offer to take the company over was confirmed last month.
"The potential acquisition of R&M, will augment our strategy and will become a core part of our equity platform,” Fleming added, saying the company’s ultimate goal is to develop between five to seven distinct and different asset management and wealth capabilities.
Gilbert said the takeover is a “core” part of the company’s strategy.
“The acquisition… strengthens our active equity capability and importantly provides a foundation stone to building a private markets business given its infrastructure investment team.
“It will complement our existing presence in thematic investing.”
The takeover is subject to shareholder and regulatory approval.
At the year-end, the company had a capital position of £56.1mn, and £9.6bn of assets under management.
The group was formed by Gilbert and several former colleagues from the firm he founded, Aberdeen Asset Management.
Earlier this week, R&M announced it had lost a £927mn mandate across several of its global equities strategies.
In a note to the stock exchange on February 15, the firm said it had received notice from a client of its equities management business, stating that the client intended to redeem the assets.
The funds represent £2.8mn of R&M’s annualised revenue.