Tatton AM’s momentum shows no sign of abating. Assets Under Management/ Influence (AUI) jumped 18% in H1 to a record £25.8bn; ahead of our forecast growth and well on track to meet Tatton’s medium-term target of £30bn by end-FY29. Net flows were again very strong, adding £1.7bn to AUM (£281m/ month), with the net inflow rate far higher than peers and above Tatton’s guidance for FY26 (£200-£250m/ month). Investment returns added £2.1bn (+9.9% over 6 months).
Assuming flat markets for the balance of FY26 (noting there is always the chance of market falls pegging back AUM), we upgrade FY26 forecasts as follows: AUM £22.4bn (previously £21.1bn - excluding c. £1.2bn AUI from 50%-owned 8AM Global); revenue: £51.6m (£50.6m); adjusted operating profit £26.3m (£25.6m); PBT: £25.0m (£24.3m).
Growth is underpinned by market and Tatton-specific factors: savers and investors keep contributing to investment/ retirement pots; an ageing population demands more advice with more ‘adviser-led’ investments (Tatton’s channel); and advisers continue to outsource investment management.
Moreover, Tatton has a superior offering in Model Portfolio Services, which advisers commonly use. It grows AUM by adding new IFA clients (+5.4% over H1 to 1,170) and by increasing average-AUM-per-client-firm (capturing a higher share of wallet). On revised forecasts, our fundamental valuation ticks up from 735p per share to 750p.
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