Financial Planner and wealth manager Evelyn Partners has reported a recovery in inflows as inflationary headwinds have eased, with gross inflows up 50% to £2.1bn in Q4 2023.
In a trading update today the firm said Q4 had been a “strong” quarter with a pick up in flows.
Paul Geddes, group CEO, said the end of 2023 saw major inflows of new client money and rising markets.
He said: “We ended 2023 with a strong quarter, driven by rising markets and continued sizeable inflows of new client money which together increased our assets under management and advice by 6.1% to a record £59.1 billion at year end.
“Market movements added £2.7 billion to AUMA in Q4 and we also saw £2.1 billion of gross inflows in the quarter which, alongside Q2, was our joint best quarter since the merger of Tilney and Smith & Williamson in 2020. On a net flow basis, we delivered £0.7 billion of inflows.”
He said the firm had seen strong demand for advice and investment management and its focus would be to give clients the option of being supported by both a Financial Planner and investment manager working together to provide a “holistic wealth management service.” The firm had also seen progress in working as a trusted provider of investment services to IFAs.
The professional services business also had a good fourth quarter with full year operating income up 14.6% to £183.2 million (2022: £159.8 million). During 2023 the firm acquired four accountancy and tax advisory firms including in Q4 the acquisitions of Creaseys in Tunbridge Wells and Harwood Hutton in Beaconsfield.
Mr Geddes said that while the economic outlook still remains weak the “headwinds of last year are easing as inflation subsides and interest rate cuts are on the horizon.”
Gross inflows were £2.1 billion in Q4, up 50% on the same quarter in the previous year year (Q4 2022: £1.4 billion) and equivalent to an annualised growth rate of 15.1% based on opening assets. For the 12-months ended 31 December 2023, the business achieved record gross inflows of £7.8 billion (2022: £5.4 billion).
Net inflows increased to £0.7 billion in Q4 (Q4 2022: £0.6 billion), equivalent to an annualised growth rate of 5% based on opening assets. On a full-year basis, net inflows in 2023 were a record £3.1 billion (2022: £2.3 billion), a growth rate of 5.8% based on opening assets.
Financial Planning Today Analysis: After a grim 2023 for many platforms and investment managers, Evelyn's Q4 trading update today will be seen as a sign of some 'green shoots' emerging in the financial sector. As the company says, the economy remains anaemic but there are signs of market recovery, easing inflation and some return of client confidence. The firm is also benefitting from its mega merger with Tilney and acquisitions, particularly of accountancy and tax adviser firms.