The number of advice firms using Tatton Asset Management's DFM services has increased by a third as advisers increasingly look to outsource their investment proposition.
In its end of year results published to the market this morning (June 16) the investment manager confirmed 595 firms were using its DFM services at the end of March, up 34 per cent from 445 advisers in 2019.
This included 81 IFA firms from the Tenet Group now using Tatton's model portfolio service as a result of a strategic partnership agreed with the network last year.
Almost a fifth of Tenet's advice firms now use Tatton's services, contributing £261m of net new flows to the investment manager.
Paul Hogarth, chief executive at Tatton, told FTAdviser a combination of the recent market downturn, the suspension of 11 UK property funds in the wake of the coronavirus crisis and last year's Woodford debacle had driven advisers to outsource their investment propositions.
Today's results for the year ended March also saw the listed company report a 68 per cent increase in pre-tax profits to £10.3m and a 22 per cent increase in group revenue to £21.4m.
Mr Hogarth said: "I am particularly pleased with how the group has reacted to recent events working remotely and maintaining our focus on supporting our IFAs and wider client base.
"I personally feel that you cannot beat face to face advice and look forward to the resumption of normal business practices as and when circumstances allow.
"It will be great to see our IFA partners moving their businesses forward and supporting their clients in their normal manner."
In September Tatton completed its first acquisition, buying the Tenet subsidiary Sinfonia in a deal worth up to £2.7m, and Mr Hogarth told FTAdviser the company was still on the lookout for more opportunities, undeterred by the coronavirus crisis.
Tatton floated in 2017 and has since increased its assets under management from £3.9bn to £6.6bn - a jump of around 70 per cent.
rachel.mortimer@ft.com
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