ArchitasMar 18 2019

Architas' assets suffer from difficult market conditions

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Architas' assets suffer from difficult market conditions

Architas has seen more than £650m in net new money in the UK last year, in spite of a difficult 12 months for asset managers.

By comparison, in 2017, the asset management firm pulled in £867m.

Globally, the asset management firm attracted net new money of €1.72bn (£1.47bn) in 2018, compared with €2.12bn (£1.81bn) the year prior.

Hans Georgeson, chief executive of Architas, said: "After strong market returns the previous year, 2018 saw falls across nearly every asset class. In the UK we have also had to face the ongoing uncertainty around Brexit.

"Against this backdrop we are pleased to have continued to receive positive inflows into both our UK and broader global businesses.

"The market turbulence last year showed the potential benefit of a multi-asset and volatility managed approach and demand remains high for this investment option among advisers. Overall our cautious approach to asset allocation and an explicit quality bias in fund selection combined to deliver robust relative performance during the past year despite the difficulties faced in markets."

Global assets under management for the firm were down €1.4bn (£1.19bn) when compared with 2017, at €42.3bn (£36.17bn).

Mr Georgeson, said: "Although we have seen markets recover strongly since the start of the year we expect 2019 to remain a tough environment for investors with concerns such as Brexit for the UK and Europe, as well as ongoing trade tensions between the US and China.

"In this environment it is vital for us to stay as close as possible to our clients and ensure we communicate with them in a clear and concise manner.”

Darius McDermott, managing director at Chelsea Financial Services, said: "2018 was a tough year for asset managers, for sure. The fact that Architas has managed to stay with net inflows is a very good sign.

"Lots of groups will have had net outflows and hence this looks like a good result even if the figures are down from 2017."

Jenny Turton is a freelance journalist