Close Brothers  

Close Brothers assets rebound after virus turmoil

Close Brothers assets rebound after virus turmoil

Client assets at Close Brothers have rebounded after market turmoil saw £1bn wiped from its asset management arm at the height of the global coronavirus pandemic.

In a trading update today (January 21) the company reported its managed assets had increased to £13.9bn in December, up from £12.6bn in July last year. 

Total client assets increased to £15bn, up from £13.7bn five months prior, which Close Brothers primarily attributed to favourable market movements. 

Article continues after advert

The figures reflect a significant recovery from the £1bn hit in the first months of the crisis, when client assets which had sat at £14bn at the end of January last year, dropped to £13bn three months later. 

For the five months to December 2020 the asset management arm reported annualised net inflows of 5.4 per cent and said it remained committed to investing in new hires and technology to support its growth.

Adrian Sainsbury, the newly appointed chief executive at Close Brothers, said: "We have delivered a strong performance year to date, with the positive trends reported at the end of the first quarter continuing. 

"Although the external environment remains highly uncertain, with national lockdown restrictions currently in place, our proven model and significant experience leave us well positioned."

Mr Sainsbury took up the top role at the company in September following the departure of Preben Prebensen after ten years in the role.

In last year's financial results Close Brothers reported a slight drop in its advice income as new business was impacted by the coronavirus pandemic.