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Investing.com -- Tatton Asset Management PLC (LON:TAMT) reported a strong start to FY25 on Tuesday, with its latest trading update highlighting robust asset gathering that exceeded market expectations.
Net inflows surged to £3.7 billion, up 60% year-on-year and 22% above RBC Capital Markets’ estimates, pushing total assets under management and advice (AUM/I) up 24% to £21.8 billion.
Tatton’s record net inflows for FY25 represented an organic growth rate of 22.3%, significantly outpacing the broader wealth sector’s average organic growth. This impressive growth came despite a softer market in FY26, with AUM/I reported at £21.1 billion as of April 11, 2025, reflecting a modest decline of 3.3% due to market conditions.
The Wealth Management Association (WMA) index, in comparison, dropped by 4.2% as of the same date, highlighting Tatton’s resilient performance amidst volatility.
The company’s management has expressed confidence in achieving its FY29 target of £30 billion in AUM/I. Tatton has already accomplished 47% of the required net flows necessary to meet this goal in just 20% of the timeframe.
Even with the ongoing renegotiation of the Perspective Financial Group contract, the firm has secured approximately 30% of the net flows needed for the target.
Tatton’s CEO acknowledged the current economic volatility but maintained an optimistic outlook for the business.
Analysts have commented positively on the update, with RBC noting, "We see this result as supportive to our view that TAM’s favourable market exposure (principally to MPS) and first-rate proposition present it with the best organic growth prospects in the sector, thereby meriting a premium valuation."
RBC also noted that Tatton’s shares have been the weakest among wealth managers under coverage year-to-date, down 16% compared to the sector average of 12%. However, this decline was considered unwarranted, as TAM is believed to have the most resilient organic growth prospects in the sector.
Additionally, its higher operating margin makes its profits less sensitive to market movements compared to most peers.