Close Brothers inflows grow 60% but assets drop

Stockmarket-Stock-Market-700x450.jpgClose Brothers Asset Management saw net inflows increase 59 per cent year on year in the first half of the year, but client assets dropped due to “negative market movements”.

In its interim results published today, the firm saw net inflows increasing year on year to £310m in January this year from £195m in January 2015.

However, total client assets fell by 15 per cent from July last year at £10.8bn to £9.1bn reflecting the disposal of £1.3bn of corporate assets which completed in the period and the effect of negative market movements, the firm says.

Within the new figures, managed assets slightly reduced to £7.3bn from £7.5bn in January 2015 also reflecting the impact of the disposal as net flows were offset by “adverse market movements”.

Overall, operating income increased 9 per cent to £47m from £43.3m and adjusted operating profit rose 18 per cent to £8.4m.

Close Brothers Asset Management chief executive Martin Andrew says: “Progress has continued in asset management despite difficult market conditions. Profitability is improving, we have seen positive inflows from our own advisers and third party intermediaries and we are well positioned to build upon these results.

“Regulatory and demographic change presents an opportunity for growth, as well as supporting long-term demand for our personal advice and wealth management services.”