In a trading update published this morning (January 6), the chief executive of Mattioli Woods, Ian Mattioli, said the suspensions would result in more people turning to financial advisers to avoid feeling the impact in 2020.
Mr Mattioli said: “Events such as the suspension of the Woodford Equity Income Fund and the M&G Property Portfolio are likely to drive an increased demand for the holistic planning and expert advice we provide."
He added: “We continue to invest in our people, technology and infrastructure as we look to build upon our success to date.
“Clients need long-term advice and strategies more than ever before and we will continue to provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing wealth management marketplace, integrating asset management and financial planning.”
Neil Woodford’s £3bn Equity Income fund was suspended in June after experiencing a sustained period of outflows.
When it could not meet the requested redemptions, the fund was gated and investors trapped inside.
The portfolio was initially touted to re-open last month, but instead its administrator, Link Fund Solutions, announced in October that it would be shut permanently, with investors expected to lose more than 30 per cent of their assets.
Meanwhile the M&G Property Portfolio was suspended at the start of December after an "unusually high and sustained" period of outflows.
Estimates from Morningstar showed investors had pulled about £900m from the £2.5bn fund in the first 10 months of 2019, averaging £22.5m a week.
Even though Mattioli Woods believes it will benefit from this uncertainty in the advice arm of its business, it too has seen reduced inflows into its investment services.
Mr Mattioli said: “I am pleased to report a return to revenue growth in the first half of this financial year, with increases in direct Ssas [small self administered schemes] and Sipp [self-invested personal pension] fees and investment-related revenues.
“We have achieved this despite continued market and political uncertainty, albeit this uncertainty resulted in lower net inflows into the group's bespoke investment services than in the equivalent period last year.”
Mattioli Woods is expected to continue its acquisition streak and will look out for further takeovers of both advice firms and the self-invested personal pension portfolios of failed firms.
At the end of last year Mattioli Woods acquired Glasgow-based financial planning firm the Turris Partnership in a deal worth up to £1.6m.
This followed previous acquisitions including Ssas Solutions (UK) Limited and Broughtons Financial Planning.
Mr Mattioli said: “Consolidation within both wealth management and Sipp administration is expected to continue, and we will seek to build on our track record of successful acquisitions by continuing to assess opportunities that meet our strict criteria.”
In its final results for the year ended May 31, 2019, the wealth management firm reported that the number of Sipp and Ssas schemes administered had increased to 5,068 at year end 2019 from 4,699 in 2018, with scheme numbers enhanced by the acquisition of Ssas Solutions in March 2019.
In prior years, Mattioli Woods had been appointed to administer a number of client books from failed Sipp firms, including schemes previously administered by Stadia Trustees, HD Administrators, Pilgrim trustee Services and The Freedom Sipp.
The firm will publish its interim results for the six months ended November 30, 2019 next month (February 4).
amy.austin@ft.com
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