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Mattioli Woods leads listed wealth managers – can its rise continue?

by Elsa Buchanan on Jun 19, 2014 at 15:16

Mattioli Woods was the standout performer among listed wealth managers last year and is already well ahead of the pack in 2014. It is being tipped to continue on its stellar trajectory.

The company’s share price rose by 84% in 2013 and year-to-date it has surged by a further 20.92%, outstripping the FTSE All Share’s miserly 0.17% gains.

City Financial UK Opportunities manager Leigh Himsworth is backing the stock, viewing its expansion plans as a positive.

‘We still hold the view that interest rates will remain low for a long time, and the reverse will be that personal rates of taxation will remain elevated, something wealth managers are in a good position to benefit from,’ he said.

‘We’re in Mattioli Woods because we love their management team and the acquisition they did with [Newmarket-based IFA] Atkinson Bolton [in July 2013].’

He also backs the addition of Atkinson Bolton director Simon Gibson to the existing Mattioli team, which he said further strengthens the company’s board. ‘It’s a great combination, albeit a bit off the radar. Mattioli has generated some very attractive returns, particularly through its nice little niche in smaller company pension funds.’

Mattioli Woods said in January that it is aiming to convert £400-£500 million of advised assets held within its historic subsidiaries onto its discretionary platform.

Among the bigger players, Brewin Dolphin and Charles Stanley continue to find favour, despite mixed years for both companies. Charles Stanley issued a profit warning in April, which was a major driver behind its share price falling by 15.8% year-to-date, while Brewin’s share price has managed to marginally outperform the market, up 1.34%, despite announcing a £32 million tech writedown.

Toby Gibb, investment director for UK equities at Fidelity, expects further upside for Brewin, pointing to plans to boost margins.

‘Brewin Dolphin has a strong market position in an industry that is growing, thanks to demographics, pension reform and consolidation. We remain positive on the name,’ he said.

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  • Mattioli Woods PLC
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  • Brewin Dolphin Holdings PLC
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  • Charles Stanley Group PLC
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  • Leigh Himsworth
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