Odey Asset Management performance fee revenue shrinks to just £900k

Results do not cover the period during which Crispin Odey was charged with alleged sexual assault

Odey's shrinking fund takes big bet on UK debt

Performance fee revenue at Odey Asset Management shrunk to just £896,000 in its latest financial results compared to £11.9m a year earlier delivering a substantial hit to profits.

Profits were £8.3m for the year ended 5 April 2020 compared to £16.1m in the 2019 financial year, according to Companies House filings. Management fees brought in £23m compared to £26.9m the previous year.

Fee income from Europe fell substantially over the period from £21.5m to £9.8m between the two latest sets of results. The UK accounted for the next highest level of fee income delivering £8.8m down from £11.3m.

Odey Asset Management managing director Timothy Pearey admitted assets under management had declined over the last three years but said profit margins remained “strong” and monthly management fee revenue ensured good liquidity.

The results said Covid-19 had not had any significant impact on Odey Asset Management from a business or operational perspective.

Staff costs fell by almost a third from £11m to £7.6m with the headcount among administrative staff dropping from 28 to 23. The investment management headcount remained the same at 19.

Odey Asset Management holds assets in a selection of its funds, including Odey Absolute Return, LF Odey Continental European and Odey Total Return. The value of these investments fell from £1.9m in 2019 to £971,000 in 2020.

Group results that cover both Odey Asset Management and Odey Wealth Management showed AUM had fallen to $2.9bn (£2.1bn) from $4.9bn the previous year. Operating profit at Odey Wealth Management was £319,000 compared to £445m the previous year.

The results do not cover the period during which Crispin Odey (pictured) was charged by the Crown Prosecution Service over an alleged indecent assault.

In September, Odey pleaded not guilty to the charge and the case has been adjourned for a two-day trial on 17 and 18 February at Hendon Magistrates Court.

Odey Asset Management revealed in November its eponymous founder would be stepping back from management duties to focus on his funds leaving Pearey as the sole chief executive. The firm also plans to launch a separate entity Brook Asset Management.

See also: Adrian Courtenay: ‘Odey Asset Management is like a barristers’ chambers’

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