Tatton Asset Management reports record net inflows

Tatton Asset Management reported record net inflows of £1.8bn for its first half on Tuesday, contributing to a total increase in assets under management of £2.3bn.

The AIM-traded firm said that represented a 26.6% rise in assets under management over the six-month period, bringing the total to £19.9bn, up from £14.8bn a year earlier.

It said the strong performance was driven by high levels of organic net inflows, which averaged £305m per month during the six months ended 30 September, significantly higher than the £192m per month a year earlier.

Total net inflows reached £1.832bn, accounting for 22.1% of opening assets under management on an annualised basis.

Positive market conditions contributed a further £534m to the increase in assets under management.

Tatton also expanded its network of supporting independent financial advisers (IFAs), growing the number of firms to 1,038, a 6.5% increase since March.

The group added that its Paradigm division, which provides IFA support services, delivered a resilient performance in a challenging mortgage market.

Paradigm Mortgages completed £6.6bn in mortgage transactions, reflecting a shift towards lower-margin product transfers due to the high-interest rate environment.

“The group has made strong progress this financial year which is exemplified by the record level of net inflows over the last six months,” said founder and chief executive officer Paul Hogarth.

“Particularly pleasing is the consistency of the flows averaging £305m per month with a high of £375m and low of £260m per month over the period.

“The strong flows coupled with the consistent investment performance has increased our assets under management by £2.3bn to just short of £20bn in six months - a key milestone as we head towards our target of £30bn by the end of the 2029 financial year.”

Hogarth noted that the company’s Paradigm Mortgage business participated in £6.6bn of mortgage completions, showing an improving performance from the second half of last year.

“We welcome the continued improvement in the housing market as inflation and interest rates have both reduced over the period.

“Paradigm Consulting continues to perform in line with our expectations.”

Entering the second half of the year, Paul Hogarth said the firm was conscious of the wider macroeconomic and geopolitical volatility, but more acutely, the impact the UK Autumn Budget was having on investor sentiment and the UK market generally.

“However, against this backdrop, we believe we are well positioned to make further progress over the remainder of this financial year.”

Tatton said it would release its full unaudited results for the period ended 30 September on 13 November.

At 1038 BST, shares in Tatton Asset Management were up 7.68% at 715p.

Reporting by Josh White for Sharecast.com.