Dealmaker Martin Gilbert has said his firm AssetCo is behind where it wants to be in terms of asset growth after “unrelenting” market pressure.
In a half-year results statement released today (June 14), Gilbert, the chairperson of AssetCo, said although most stock markets saw some uplift in value in the six months to the end of March, investor sentiment was “weak” and the collapse of Silicon Valley Bank and rescue of Credit Suisse doing “nothing” to calm investors’ nerves.
Gilbert said the group generally suffered outflows in the period, when it had been expected inflows.
“The general rise in markets has cushioned the effect to some extent, but it is fair to say that we remain behind where we want to be in terms of asset growth,” he said.
Outflows from AssetCo’s UK equity funds increased from the “record levels” seen in 2022, the group said, with only the group’s global equity funds showing “tentatively positive” flows in the first quarter of this year.
AssetCo saw revenues of £8.2mn in the six months to the end of March, and a pre-tax loss of £13.8mn in the period, including £3mn in one-off costs and £11.7mn of administrative expenses.
The company wrote down the holding value of Rize ETF, which it acquired a stake in during 2021, and it has made a provision of £1.7mn against certain assets held on River and Mercantile’s infrastructure business.
AssetCo had £86.5mn in balance sheet assets at the end of March, and cash of £27.5mn.
The company swung to a loss last year as a result of its acquisitions and operating costs.
The acquisitions in 2022 included River and Mercantile in June, Revera Asset Management in August and SVM Asset Management shortly after the year end.
Revera, SVM and Saracen Fund Mangers, another company acquired by AssetCo, are now all working together as an active equity asset business.
Earlier this year, AssetCo bought Ocean Dial Asset Management for £4.13mn.
Gilbert declared an “assault on costs” as a result of the company’s performance.
“An aggressive assault on continuing costs is on-going and remains a key focus of the coming year,” he said.
sally.hickey@ft.com
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