Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Charles Stanley warns profits 10% lower than expectations

Charles Stanley warns profits 10% lower than expectations

Charles Stanley has warned that pre-tax profits at the group could miss expectations by over 10%.

In a pre-close trading update, the group said profits would be lower than expected due to post RDR consultancy work and other 'exceptional professional fees' that have increased one-off costs during the 12 months to the end of March. Charles Stanley also said costs associated with enhancements to its middle office including risk management head count and additional IT systems expenditure had eaten into profitability. 

Nonetheless, total assets under management and administration at 31 March had reached a new high of £20.1 billion, up 13.5% from £17.7 billion in 2013, compared to a 2.6% rise by the WMA Balanced Index. Charles Stanley noted particular growth in managed funds of 20.4% to £11.2 billion over the year.

Charles Stanley Direct now has over 15,000 clients and new funds of over £200 million. 'Whilst it is still very early days, we are pleased with progress,' the group noted.

The private client group, led by Sir David Howard (pictured) said its new Leicester branch, which has sparked a High Court battle with rival Brewin Dolphin over the recruitment of six of its staff, had brought in additional assets. Costs relating to the new office during the year amounted to £2 million, which does not include potential legal costs relating to the High Court dispute.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter