Tatton Asset Management plc (LON:TAM), the investment management and IFA support services business, has provided an unaudited period end update on the Group’s performance for the six months ended 30 September 2021. The unaudited results for the Period will be announced on Wednesday, 17 November 2021.
The Group delivered strong growth across all its key metrics during the Period, including revenue, profits and assets under management (“AUM”) and the Group is trading in line with expectations.
TAM continues to execute its strategy successfully, growing AUM both organically and through acquisition in the Period. Total AUM increased by 20.0% or £1.797 billion to £10.787 billion (Mar 2021: £8.990 billion) in the Period with organic growth contributing 12.8%.
Tatton net inflows were £0.652 billion, increasing 98.8% compared to the same period last year (Sep 2020: £0.328 billion). In addition, strong investment performance increased AUM by over 5.0% adding £0.495 billion and the recent Verbatim acquisition contributed a further £0.650 billion.
| Total £bn | |
| Opening AUM 1 April 2021 | 8.990 |
| Net inflows | 0.652 |
| Market and investment performance | 0.495 |
| Acquisition of Verbatim funds | 0.650 |
| Closing AUM 30 September 2021 | 10.787 |
Paradigm, the Group’s IFA support services business, also continued to grow, with Mortgage firms increasing to 1,646 (31 March 2021: 1,612) and Consulting member firms increasing to 418 (31 March 2021: 407). Paradigm Mortgages saw an increase in market activity in the Period driven by the stimulus of the UK Government’s stamp duty holiday coupled with an improved lending environment. As a result, mortgage completions increased to £6.5 billion (30 September 2020: £5.0 billion), an increase of 30.0%.
Paul Hogarth, Founder and CEO of Tatton Asset Management plc, said:
“We continued to make excellent progress in the first six months of this financial year delivering very good growth across all parts of our business. We are delighted to have reached £10.8 billion of AUM at the end of September. This has been delivered through a combination of strong organic growth of 12.8% and the acquisition of Verbatim funds, announced towards the end of the Period, which added a further £0.7 billion to the total.
“Following the recent acquisition of the Verbatim fund range and strategic partnership with Fintel, we remain excited about the future opportunity for the Group. We are pleased with the start we have made and look forward to developing stronger relationships with the firms over the rest of this year and beyond. Alongside this, Paradigm continues to perform well as we continue to attract new firms to our services, with the value of mortgage completions during the Period reaching record levels.
“As we look forward to the rest of the year, we are confident of making further progress and delivering against our strategic objectives.”
