Evelyn Partners' assets under management (AUM) dropped to £52.7bn for the first half of the year, from an all-time high of £57.7bn in 2021, according to the firm's interim results.
The firm cited "the impact of market declines" as a reason for 8.7% drop in AUM.
It also reported gross and net inflows of £2.7bn and £1.1bn respectively, which were up 12% as compared to H1 2021. "This growth is a testament to the strength of our proposition, the breadth and reach of our distribution, and the quality of our people," said Chris Woodhouse, group CEO (pictured).
The firm's operating income increased to £290.5m, up 5.3% from £275.9m in the first half of the previous year. However, it reported adjusted earnings before interest tax depreciation and amortization (EBITDA) of £86.2m, down 6% from the same period last year.
In June this year, the business rebranded from Tilney Smith & Williamson to reflect reflected that it was one firm with a single purpose, which enables it to offer a broader, integrated offering to all clients, it said at the time.
Bestinvest, the group's online investment platform for DIY investors was also recently re-launched as a hybrid digital service offering free coaching and fixed price advice packages was retained as a separate brand: Bestinvest by Evelyn Partners.
The business also said that the teams from three firms had joined it in the year till 30 June 2022, with "a strong pipeline of further opportunities."
Woodhouse said: "The war in Ukraine, high levels of inflation and rising borrowing costs have created a challenging backdrop this year, with both equity and bond markets down during the first six months of 2022. During this period our relative investment performance has been strong compared to peers.
"Operating income increased by 5.3%, with growth in both Financial Services and Professional Services. Adjusted EBITDA of £86.2 million was down 6.0% compared to the same period last year, reflecting a combination of increased costs as we have invested in the business to capitalise on the significant longer-term growth opportunity available to us and the impact of market declines on the fees that we earn from managing client assets.
"Going forward, our EBITDA will benefit from the annualised impact of both growth and efficiency initiatives implemented in 2021 as well as the migration of assets to our new platform during the second half of 2022 and in early 2023 which will generate material cost savings.
"A number of significant projects came to fruition in the first half of 2022, demonstrating continued progress against our strategy. These include the move to our new, unified brand in June, which enables us to present both existing and potential clients with our combined and wider service proposition. This has been accompanied by a promotional campaign around the theme ‘the Power of Good Advice' to raise awareness of the new brand and to highlight that the best advice is often personal.
"Another milestone for the business in the past quarter has been the transformational relaunch of Bestinvest as a hybrid service combining the best of digital tools with investment coaching by qualified professionals.
"This enhanced and distinctive offering is well placed to help the estimated 9 million individuals in the UK who already have some form of long-term savings but who are not receiving professional advice and don't know from where to seek it. This enhancement in our proposition means we can provide best in class capabilities to clients through the channel of their choice, whether digital, hybrid, or face-to-face."
