Waverton: 'Our hard work paid off' as inflows up 74%

The Westminster-headquartered firm published its full financial results this week (April 26), which showed a jump in inflows from £800mn in 2020 to £1.8bn in 2021 for its ‘Adviser Solutions’ channel.

Launched 12 years ago, today Waverton’s MPS is available on 22 advised investment platforms and services around 400 adviser firms.

You’ve really got to earn your stripes in the advice community.Nick Tucker

The investment manager operates a direct (individual securities over funds of funds), global, and active investment strategy.

According to Nick Tucker, Waverton’s chief executive, 2021 was the year this strategy paid off for its adviser channel, which is now the firm’s fastest growing business. 

“Performance has always been strong, but you’ve really got to earn your stripes in the advice community,” Tucker told FTAdviser.

“Advisers are wary of small and upcoming players, they want to see you prove yourself. You have to be on all the different platforms and offer the right service, otherwise you’re not in the game. 2021 was the year all our hard work paid off.”

Last year also saw Waverton’s overall profits recover, up 46 per cent from £8.2mn in 2020 to £12mn in 2021. Meanwhile revenue, almost wholly made up of asset-based fees, finished on £50.3mn - an increase on £42.9mn the previous year.

Assets under management had reached £8.6bn in the 12 months to December 2021, up from £6.9bn the previous year.

Tucker hinted at a “record” Q1 in 2022 for inflows to the investment manager’s adviser channel, taking the firm closer to £10bn in AUM.

“We’ve gone from being a very small player to - we’re still not huge - but our footprint is significantly bigger,” said Tucker.

“It’s about incremental growth, digging into our current adviser book and adding to that.”

Organic growth

Rather than acquire businesses, Waverton is currently focused on organic growth and driving it through new services.

Advisers will understand there will be periods with no returns.Nick Tucker

As part of its offering, advisers get access to a digital portal which includes tools such as a report builder, and personalised factsheets for clients.

“Some big DFM [discretionary fund management] firms just aren’t that agile,” said Sasha Dabliz, Waverton’s marketing head. “We have an extremely agile mindset and aren’t encumbered.”

Dabliz also highlighted the firm’s environmental, social, and governance (ESG) strategy, which is considered for every investment rather than being a bolt-on or “product-led”.

“For advisers, ESG in isolation is nonsense,” she said.

Last year, the firm’s MPS solution delivered returns of between 8.7 and 16.1 per cent depending on a client’s risk profile.

But Waverton, like many other investment managers, has not been immune to market volatility over the last few months in the wake of the Russia-Ukraine war.

Tucker acknowledged that investors have not made positive returns in the first quarter of this year. 

“Advisers will understand there will be periods with no returns,” said the Waverton boss, before caveating this with “now is not the time for complacency”.

One thing Tucker thinks has helped Waverton over the first three months of this year is its service team and its technology which have provided information for clients. “Advisers aren’t having to explain the bad performance,” he said.

Plans for advisers this year are focused on performance, with the firm’s strategy remaining the same. Waverton is also in the process of hiring three people to its service model team, according to Tucker.

“It’s a bit like an army advancing, you have to make sure the supply lines remain attached.”

The company’s ultimate goal is to be one of the largest MPS providers for advisers in the UK.

Two years ago, the firm was signing up advice businesses with two, three or four people. Then last year, the company signed up a national chain - the identity of which is yet to be revealed.

ruby.hinchliffe@ft.com