Client wins at platform and SIPP provider James Hay fell 22% in the first 10 months of the year according to parent company IFG’s latest trading update.

The firm put the slump down to equity market volatility and “the slowdown in defined benefit transfers impacting the SIPP market.”

Despite the setback a statement from IFG said: “The group is focused on developing and optimising two strong and self‑reliant businesses which will enhance its strategic optionality.”

But the firm conceded that “providing clarity on, and resolving, legacy issues” remained a priority.

It also revealed James Hay was enhancing its platform solution to support expansion into the wider investment platform market, including General Investment Accounts and ISAs which are expected to represent “approximately one third of new business AUA by 2021.”

James Hay is targeting around 7% annual growth in revenue over the next three years, with operating margin improving from around 19% in the first half of 2018 to around 25% by 2021, the report added.

James Hay’s assets under administration at 31 October 2018 were £26bn, up 2% from 31 October 2017, with net inflows said to be largely offset by adverse market movements.

The report also stated that Saunderson House was targeting around 9% annual growth in revenue over the next three years, with improving operating margin over the same period.

Saunderson House’s new client wins were 208 to 31 October 2018, a figure ifs says is broadly in line with the first ten months of 2017.

Assets under advice at 31 October 2018 were £5bn, broadly unchanged from 31 October 2017, again with net inflows offset by adverse market movements.

Kathryn Purves, group chief executive, said: “We believe that in developing strong, deliverable strategies with attractive growth profiles for each of James Hay and Saunderson House and minimising group costs, we are enhancing longer term strategic optionality for the group.

“Our businesses continue to deliver strong results, trading in line with expectations.

“I am encouraged by the opportunities for both businesses and expect this to translate into real value for shareholders in the medium term.”