Tatton Asset Management (TAM LN) - Stronger than expected net inflows

For the past six months, net inflows to Tatton Asset Management have averaged £305m per month (up 59% yoy); total net inflows were £1,832m being 11% of opening AUM (i.e. 22.1% annualised). Tatton’s trading update also revealed the number of IFA firms on Tatton grew 6.5% to 1,038 and Paradigm, the group’s IFA support services business “delivered a resilient performance”. We will update our forecasts, once interim results have been published (13 November).

Zeus Industrials Round-Up - 11 October 2024

The UK industrial sector expanded for a fifth consecutive month in September per manufacturing PMI data, although activity was slightly softer MoM as employment levels, inventories and business confidence declined per the survey, primarily due to uncertainty regarding the Autumn Budget, US elections and subdued global market conditions. Global inflation data has been encouraging and we await next week’s UK payroll data to understand the BoE’s next decision, although it is widely anticipated that

Diverse Income Trust (The) - Could be the time for UK equities to shine

The Diverse Income Trust (DIVI) is a member of the 18-strong AIC UK Equity Income sector. It has a differentiated multi-cap income strategy and therefore its performance can differ meaningfully from those of its peers. Managers Gervais Williams and Martin Turner at Premier Miton Investors are very bullish on the outlook for UK stocks, which they believe can outperform overseas mainstream equity indices due to very attractive valuations and income prospects. They note that with global profit marg

Bumper H1-25, AUM up 14% driven by inflows

Tatton has recorded an exceptionally strong start to the next leg of its growth journey: in June ’24 it set a target of reaching £30bn of Assets-Under-Management or Influence (AUI) by end-FY29, an 11% CAGR. But H1-25 (to 30 Sep 24) saw AUM jump 14% in just six months from £16.6bn to £18.9bn. Net inflows contributed £1,832m (22% p.a. inflow rate), and investment returns £534m (3.2% over 6m), in line with the MSCI PIMFA Private Investors Balanced Index. Including the AUM of 50%-owned 8AM Global, A

PANMURE LIBERUM: Ramsdens Holdings: All income streams ahead of last year

Morning Note – 30 September 2024

Alliance Trust

ATST’s combination with WTAN could produce a FTSE 100 giant…

H1 AUM +4% from quality manager with 8.6% yield

AUM increased 4% over H1-25 (1 Apr 24 – 30 Sep 24) to £22.7bn from £21.9bn on 31 Mar 24. It was a half-year of two quarters with Q1 AUM up by 7.4% (net inflows: +£644m, investment performance: +£978m), while a more challenging and volatile market environment saw Q2 AUM down 3.5% (net outflows: -£172m, investment performance: -£655m). The marginally negative net flows of Q2 (0.7% of AUM) were not a surprise for a period of investor nervousness, with UK investors withdrawing from equity funds in

Allenby Capital TMT Update - 14.10.24 - BIRD.L, TRAK.L, ELEG.L, ENET.L

Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.

Sensible strategic acquisition of stake in Lea Bank ASA

Multitude announced to have acquired a stake in Lea Bank ASA. With this sensible strategic acquisition, Multitude further diversify its business an continue on its growth path.

PANMURE LIBERUM: Alpha Group International: Underlying margins modestly ahead

H&T Group (HAT):1H’24 results: Four-one at half time, but the one wins

H&T 1H’24 results saw pre-tax profits rise 12.5% from 1H’23 to £9.9m. We have identified five key ongoing business messages, four of them favourable and one unfavourable. The scale of the latter, though, means we have reduced our FY’24 estimates by £3m, but still forecast double-digit profit growth. The positive messages were i) strong demand for pledge lending (gross advances up 14% to £146m, ii) retail sales up 27% with an improving margin, iii) FX delivering double-digit profit growth, and iv

Flow headwinds come as no surprise

With the Budget looming, it comes as no surprise that the Intermediary community is taking a cautious approach. Overall, AuM declined by 4% qoq to £26.0bn (vs £26.5bn SCMe) with £1.1bn net outflows driven by natural redemptions and a small £0.1bn positive performance contribution, although some drag from style biases. We had anticipated the flow performance in our recent preview note: this outturn drives no material changes to our estimates. We see considerable upside here (8x PER) as and when f

Agronomics - A unique offering in a rapidly developing sector

Agronomics (ANIC) invests in cellular agriculture companies. Since mid-2022 it has placed increasing emphasis on companies using precision fermentation technology or providing contract precision fermentation services, as these appear to have greater near-term commercial potential than cultivated meat and seafood. Agronomics’ NAV has risen almost 100% since the inception of the current strategy in April 2019, and looks set to increase further as the company’s portfolio holdings receive regulatory

Around the World in Eight Ideas - Investment Trust Opportunities Beyond the UK

Although the UK now represents a paltry 3.5-4.0% of global equity indices, home bias in the domestic stock market is estimated at c 25% across institutional and retail investors. This persists across asset classes: in the Investment Association universe of open-ended funds, 28.1% of total AUM at the end of September 2023 was invested in UK sectors. This leaves a significant amount of investors' assets exposed to overseas markets that may be unfamiliar and harder to access. In such a situation, t