Investment and wealth management firm JM Finn has posted improved profits for 2022, thanks in part to cost controls and strong inflows, according to the group’s latest results which were released today.
In a challenging year for investors, the group said that falling markets saw JM Finn’s funds under management and administration slip to £10.3bn in 2022. In spite of this, revenue was broadly unchanged, falling just 0.9%, supported by interest earned on the company’s capital position and another good year of gross inflows.
Gross inflows were the second highest on record, at £756m, and this translated into net discretionary inflows of £160m. The firm noted that nearly half of the new business (46%) came from new clients, with the remainder from existing clients; this is an increase of 14% on 2020’s inflows, underlining the broader reach and increased brand awareness over the last five years.
Hugo Bedford, CEO commented: “2022 was a challenging year for investors and much of our investment manager focus was on ensuring good, clear and regular communication with our clients through the difficult market conditions that prevailed. Despite the fall in market-related revenue, it was good to see that the cost controls we put in place helped protect the firm and that we were able to maintain the strong momentum in new business flows that we built in 2021.”
The key metrics for the year reported by the wealth manager today were:
- Discretionary funds under management at the year-end were £8.4 billion (2021: £9.7 billion)
- Net fees and commission income were £75.5m (2021: £79.5)
- Profit for the financial year was 2.7% up at £8.5 (2021: £8.2)
- Net assets at the year-end were £57.9m (2021: £53.4m)
- Net new business for the year was £160m.
- Total Funds under management and administration were £10.3 bn (2021: £11.7bn)
- Net assets were £57.9m (2021: £53.4m)