The discretionary fund management (DFM) has been vocal about its intentions to target other companies since floating on the alternative investment market in July 2017.
CEO Paul Hogarth (pictured) said the £51.6m raised from the IPO will be used to fund a potential takeover.
But he added: “As a board we haven’t finalised our strategy on that as to who those targets are. That’s still a work in progress as we speak”.
Assets under management grew to £4.9bn from £3.9bn a year ago, the results revealed. This boosted total revenue by 30.7% to £15.5m and saw profits soar to £6.5m on an adjusted basis, up from £4.5m in 2017.
Mifid II hits clients
The meteoric rise of the platform industry, plus advisers outsourcing investment management, have helped draw in assets with plenty of room for growth, according to CIO Lothar Mentel.
Tatton touts itself as the UK’s largest provider of platform-only model portfolio services (MPSs).
“We may be the biggest in the market, but the market is huge. Platforms have about £500bn of assets so there’s a lot more for us to go for. Particularly now with Mifid II making the life of stock-picking IFAs that much harder, we’re seeing an increased interest from IFA firms,” Mentel said.
Becoming a listed business has given the firm greater visibility among IFAs, Hogarth said. The firm currently has close to 50,000 clients from 341 adviser firms.
Products in the pipeline
Tatton charges just 0.15% for its core MPS platform-only portfolios.
In February the team ventured into the multi-manager space, launching a blended fund range of six-risk rated portfolios that mirror the core portfolios of its platform-based DFM service.
Mentel said the launch was in response to demand from advisers who wanted to provide a complete centralised investment proposition (CIP) to their clients across all investment wrappers.
“There are a number of legacy platforms which don’t allow from their technology an effective discretionary portfolio management model yet,” said Mentel.
“But advisers who use more than one platform said, ‘We’d love to be on this or that platform with the Tatton proposition, can you do something about that?’ The beauty is we can offer these funds at a fairly low price compared to what other multi-manager funds would be charging.”
The Tatton Blended fund has an ongoing charges figure of 0.59% and an annual management charge of 0.3%, which compares favourably with some of the fees investors pay for the big multi-manager brands. Jupiter Merlin charges 1.62% for its Balanced Portfolio on top of an AMC of 0.75%, for instance.
Multi-manager fees
| Multi-manager range | OCF | AMC |
| F&C MM Lifestyle Balanced | 1.09% | 0.50% |
| Jupiter Merlin Balanced | 1.62% | 0.75% |
| MyFolio Managed III | 0.85% | 0.23% |
| Tatton Blended fund | 0.59% | 0.30% |
Source: Trustnet
Hogarth said the team have been busy assessing new propositions this year.
“We won’t be standing still, we will be coming forward with other solutions in due course.”
