Charles Stanley reports second quarter revenue hit

Added 21st July 2016

Charles Stanley's second quarter numbers were hit by lower commission fees and disposals resulting from its redirected business the firm said on Thursday.

Charles Stanley reports second quarter revenue hit

The investment manager’s core business generated £33.8m, down 6.8% from £36.3m on a like-for-like basis compared with the same quarter the year prior. Charles Stanley stated a reduction in trail commission, commission on bargains and interest turn were to blame for the revenue hit.

Last year, Charles Stanley disposed of its securities and financial services businesses in an effort to concentrate on developing its core wealth management business. This restructuring played a part in the 12.5% dip in overall revenues (£33.8m), the firm reported.

Accordingly, the firm’s discretionary and execution only funds increased by 4.3% and 2.9% over the quarter, while advisory managed and advisory dealing fell by 3.8% and 5.9%, respectively.

Total revenue from Charles Stanley’s Investment Management Services arm was also lower by around 8% (£29.5m), despite generating higher revenue from its asset management and financial planning businesses.

Charles Stanley did see higher funds under management and administration (FUMA) throughout the period of £20.9bn, up 2.0% from the first quarter.

CEO, Paul Abberley, remarked the FUMA growth was encouraging given the amount of market uncertainty and volatility:

"Overall FuMA increased by 2.0% from the start of the financial year and we have increased discretionary funds 4.3% to £9.8 billion. This has been achieved against a backdrop of market uncertainty leading up to the EU referendum vote." 

He added: "Stewardship of our clients' assets is particularly important during uncertain times and we will continue to monitor carefully both the political and economic environment.  At the same time, we will pursue our strategy of focusing on clients, delivering a holistic wealth management service and improving our operating margins across all our divisions."

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Investment Trusts 2017
PA Investment Trusts 2017

Tuesday 20 June
Furniture Makers' Hall

PA Income 2017
PA Income 2017

Tuesday 4 July
Radisson Blu Edwardian Bloomsbury Street Hotel 

OTHER STORIES FROM LAST WORD...