Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Close performs ‘solidly’ but Winterflood remains under pressure

Close Brothers said it has made a solid start its financial year despite a challenging time for its securities division, Winterflood.

In a brief trading update covering the first quarter, Close said assets under management in its fund arm rose by 2% on the corresponding period of the previous year to £8.5 billion, thanks largely to positive market movements.

The firm also said the revenue margin increased over the period mainly due to the greater proportion of higher margin private client assets.

This offset weakness at Winterflood.

Close told the stockmarket: ‘Winterflood has continued to be affected by the low volume trading environment, with average bargains per day reduced compared to the last financial year, while income per bargain was broadly stable.’

Meanwhile Close's banking arm displayed strength, with the loan book rising 4% to £4.3 billion thanks to growth from motor finance, asset finance and property.

The firm remains confident it can overcome uncertainty at Winterflood and have a good year.

‘Overall the group remains well positioned for the remainder of the financial year. The banking division continues to see prospects for growth and asset management remains on track to move into profitability during the course of this financial year,' Close said.

‘Winterflood continues to be affected by difficult trading conditions but remains well placed for when market conditions improve.’

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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter