Tatton Asset Management reports record full-year net inflows

16th Apr 2024 10:40

(Sharecast News) - Tatton Asset Management reported record net inflows for the financial year just ended in an update on Tuesday, of £2.3bn, equivalent to 18.1% of its opening assets under management.

The AIM-traded firm said total assets under management/advisory unit income (AUM/AUI) stood at £17.6bn at year-end on 31 March, compared to £13.9b a year earlier.

It said its Tatton Investment Management division added 106 new relationships with independent financial advisor (IFA) firms during the year.

Market and investment performance also contributed to Tatton's strong showing, with £1.5bn attributed to those factors - a significant improvement compared to the prior year's figure of -£0.4bn.

The board said it was confident the 2024 financial results would meet their expectations.

Tatton said the achievement of its highest organic net inflows to date, totaling £2.303bn, was a 28.4% increase compared to the prior financial year.

Additionally, it noted that its performance in 2024 culminated a three-year 'roadmap to growth' strategy, surpassing its ambitious £15bn AUM/AUI target by 17.4%, closing the year with £17.604bn.

Despite market fluctuations, Paradigm, Tatton's IFA support services arm, demonstrated resilience in the year.

Paradigm Mortgages saw mortgage completions totalling £13.1bn, slightly lower than the prior year's £14.5bn, but in line with expectations.

The performance was notable considering the broader market decline of 29% in gross mortgage activity.

"I am very pleased with this year's results, especially when we consider the difficult economic backdrop our industry has faced over the last 12 months," said chief executive officer Paul Hogarth.

"The group's business model and strategy continued to prove successful, and we delivered record net inflows of £2.3bn - a 28.4% increase on the prior year and 18.1% of opening assets under management.

"We built on the momentum generated in the first half of the year, with net inflows averaging over £230m per month in the second half of the year, so that, most importantly, flows stayed consistently strong throughout the whole year."

Hogarth said the Paradigm mortgage business delivered a robust performance, outperforming the gross mortgage market, and delivered £13.1bn of completions in the year.

"As with the first half of the year, the mix of completions shifted towards the lower margin products, but we maintain our view that overall, it has been a good and resilient performance in 2024.

"Paradigm Consulting continues to perform in line with our expectations."

Tatton Asset Management said it would release its audited final results for the year ended 31 March on 18 June.

At 1602 BST, shares in Tatton Asset Management were up 3.24% at 574p.

Reporting by Josh White for Sharecast.com.