Stemming losses, strengthening the balance sheet and laying a path for growth were the pillars of Charles Stanley' s (CAY) strategy last year. On the first two points management has delivered, after selling its non-core businesses and restructuring its core investment management division. Funds under management (FUM) and administration were down 3.8 per cent to £20.5bn, as rocky markets took their toll. However, this was almost in line with the 3.5 per cent drop in the WMA balanced index during the period.
Cost-saving measures, including a 7 per cent reduction in headcount, helped stem the reduction in pre-tax profit from its core businesses. This was down £0.2m to £4.2m. Crucially, discretionary funds under management - funds that are managed on a client's behalf - were up £100m to £9.4bn. Management has simplified its rate card for the core investment management business and is looking to grow its intermediary network in order to boost FUM in future.