Charles Stanley’s budding low-cost advice business has driven revenue growth at the wealth manager in the three months to June.
In the wealth manager’s final results for the year ended 31 March, it announced it would be restructuring the business around three key areas – Investment Management Services, Financial Planning Services and a newly created division, Central Financial Services (CFS), aimed at customers seeking “simplified advice”.
In its latest set of quarterly figures the reorganisation seems to be paying off. Total revenue for the three months to the end of June rose by 8.1% to £45.6m. Most of this was driven by fee-based income which “increased significantly” to £35.5m, up 16.8% compared to £30.4m for the same period last year.
See also: M&G and Charles Stanley target advice gap with low-cost services
CEO Paul Abberley (pictured) said the group continues to see “good forward momentum across all areas,” highlighting the “especially strong growth” from the CFS and financial planning divisions.
The wealth manager’s low-cost advice arm, which spans MPS and foundation financial planning, generated £6.1m in revenue in the first quarter of its financial year. This was a 15.1% improvement on the £5.3m generated last year.
Revenues at its financial planning arm leapt 21.7% from £2.3m in June 2020 to £2.8m at the end of the period.
By contrast the investment management business saw revenues increase by 6.1% to £36.7m.
Total funds under management and administration rose by 5.9% from £25.6bn at the end of March to £27.1bn at the end of June.
Positive market performance added £1.4bn to FUMA which compared favourably to a 4.3% increase in the MSCI Pimfa Private Investor Balanced Index over the same period.
Net flows across the business were a measly £100m. While its discretionary arm took in £200m from new and existing clients this was offset by £100m worth of transfers and lost mandates totalling £100m.
