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Collins Stewart Wealth Management profits fall 10%

Collins Stewart Wealth Management saw its profits fall 10 per cent in the first six months of 2009.

CSMW has recorded net inflows of £182m across the business, while the total assets under management and administration increased to £5bn.

The group’s revenue fell 5 per cent following lower transactions volumes, with recurring revenues increasing to 48 per cent of overall revenues.

CSMW says that operating profit fell as the group made ongoing investments to build the business, such as the planned launch of the cash management service and investment in its marketing and distribution arms.

Collins Stewart head of wealth and fund management Neil Drake says: “Our independent client-focused approach puts the division at a clear competitive advantage to many private banks operating as part of large integrated groups, whose product-led model has become discredited. The division is also now receiving some benefit from previous initiatives including building an intermediary sales team, opening a Geneva office and transferring our funds to Ucits structures, all of which has resulted in net inflows of £182m across all services for the first half and an increase in assets under management.

“We believe our independence, balance sheet strength and strong net cash position has undoubtedly been a source of comfort for our clients during this generally uncertain period. Furthermore, it’s these strengths that will allow us to grow our assets organically and we hope to boost this growth inorganically through recruiting talented investment professionals disaffected by their current employers and through bolt-on acquisitions.”

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