Asset managers have faced a challenging marketplace for a number of years, pressured by passive alternatives and rising technology and regulatory costs. Impax saw assets under management fall by about 46% over two years as sustainability lost favour, while Polar Capital avoided outflows thanks to strong performance in technology (55% of AUM), healthcare and financials. Liontrust, suffering outflows in quality growth and small-cap strategies, is diversifying through acquisitions including River Global and Hawksmoor Fund Management, adding £1.9bn to its £24bn AUM.
Aberdeen remained in net outflows in Q3, with £300mn outflows against expectations of £800mn inflows, though its institutional and retail wealth division returned to net inflows of £500mn. Platform business Interactive Investor generated solid net inflows of £2.5bn. Aberdeen expects at least £300mn adjusted operating profit and £300mn net capital generation this year.
ITM Power saw its share price rocket after an £86.5mn government grant and equity funding built a cash buffer of nearly £216mn. CEO Dennis Schulz highlighted the Alpha 50, a 50MW scalable hydrogen plant, and Hydropulse, a division to build, own and operate plants under long-term supply deals. Despite a 25% revenue growth forecast, ITM expects to burn through £35mn-£45mn of cash this year.
Source: Financial Times Companies · Summarized by HeadlinesBriefing