Tatton Asset Management eyes further growth after £900m net inflows in first half

Firm reached year-end target £15bn FUM in first half

Paul Hogarth, Tatton Asset Management
Paul Hogarth


Tatton Asset Management CEO Paul Hogarth (pictured) is optimistic the firm can maintain its growth momentum after enjoying £910m organic net inflows in a strong set of first half results.

Assets under management (AUM) reached £14.8bn, an annualised increase of 13.2% over the six months to 30 September.

Meanwhile, the net flows represented an annualised increase of 13.1% of opening assets under management, at an average £152m inflows per month over the period.

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Speaking to Portfolio Adviser following the results, Hogarth said: “We’ve got through another landmark point for us because we’ve just reached £15bn funds under management, which is great news.

“We’ve continued the strong monthly inflows of £150m per month post the end of September through October and November so far. The whole group is performing very nicely and as a board we couldn’t be happier.

Looking ahead to the second half of the firm’s financial year, he added: “We’re relatively optimistic that we will continue in the same vein that we have. H1 has been superb, and H2 we would expect to come in line. Obviously, my only caveat to that is we’re still in a difficult market [environment]. The £15bn that we have achieved has been through organic growth. It’s not been through any help from the market. And I’m sure that will be a real positive tailwind.”

Money market proposition

Group revenue grew 9.9% over the period, bringing in £17.5m, while adjusted operating profit was up 11.2% to £8.9m.

Meanwhile, Tatton almost doubled its interim dividend compared with H1 2022, to 8p per share from 4.5p.

In the period, Tatton launched a money market risk profile to sit within its MPS range.

In the half-year report, Hogarth said: “With the changing shape of the economic landscape and the potential for investor fatigue from market volatility coupled with rising interest rates, we launched a new risk rating within our MPS range, the Money Market risk profile. 

“Our new risk profile offers the potential for clients to receive a return on cash that tracks the Bank of England base rate more closely than most instant access UK bank deposit accounts. While still early days, the initial uptake has been encouraging as we continue to support IFAs and their clients by providing products that meet their evolving needs.”

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He added: “Our strategy to promote and support the growth of the MPS market on platform through a wide-ranging IFA education programme will continue. We also continue to increase our market penetration through a broadened distribution base.

“As a minimum, we aim to maintain our market share and continue to grow our distribution footprint through meaningful strategic partnerships. In support of this, we have been pleased to see our IFA firms continue to grow by over 5.2% to 914 [March 2023: 869] over this period. We look forward to seeing these close relationships continue to develop in the coming months as intensive activity continues to further promote the Tatton service.”

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