Evelyn Partners is now larger than listed rival Brewin Dolphin as it closed out the first half of the year with £52.7bn in assets under management.
The wealth manager, formerly known as Tilney Smith & Williamson, took a £6.1bn hit from falling markets and negative investment performance during the period, dragging total assets down 8.7% from £57.7bn at the end of December.
However, it snaked past Brewin, which ended June with £51.7bn of total funds, a sizeable drop from £59bn in AUM at the end of 2021. In March this year, it was revealed that Brewin is to be acquired by the Jersey wealth arm of the Royal Bank of Canada, in a deal that values the DFM at a hefty premium.
Volatile markets have left most UK wealth firms nursing significant hits to AUM. Rathbones had total assets of £58.9bn at the end of June, a £9.3bn drop from £68.2bn in December, while AUM at Brooks Macdonald has shrivelled below £16bn.
St James’s Place remains, far and away, the largest wealth manager with £142.3bn in AUM, even after losing £11.7bn amid the sharp sell-off in global markets.
Evelyn Partners net inflows up 12% in H1
Despite the challenging trading conditions, Evelyn Partners attracted £1.1bn of net new business in the first six months of the year, 12% higher than in H1 2021. This represented 3.9% of opening assets on an annualised basis.
By contrast, net flows for Brewin were £100m over the three months to 30 June, its third financial quarter, after bringing in £400m in the previous quarter.
Operating income at Evelyn Partners was up 5.3% to £290.5m, with growth in its financial services and professional services divisions.
However, adjusted Ebitda of £86.2m was 6% lower compared to the same period last year, reflecting declining fees on lower AUM and rising costs following greater investment in the business.
Much of this is related to its re-brand to Evelyn Partners in June, which included ‘the Power of Good Advice’ campaign to raise awareness of the new brand.
It also re-launched its Bestinvest platform as a hybrid service aimed at supporting the UK’s growing ranks of DIY investors.
Chief executive Chris Woodhouse (pictured) said growth and efficiency initiatives implemented in 2021 would improve earnings going forward, while the migration of assets onto its new platform in H1 2022 and early 2023 will generate “material cost savings”.
“The macroeconomic environment looks set to remain challenging in the near term. However, it is during periods such as these that the value of sound financial advice and the need for a well-managed investment strategy become ever more apparent. Client engagement activity is high, and will remain so, as we help our clients navigate this period of uncertainty.”