MIDAS SHARE TIPS UPDATE: Our recommendation Tatton has increased by 35%
January is a tough month. Christmas bills are coming in, credit card payments are due and the tax authorities are waiting for payment.
Putting money aside for the future can seem almost impossible – but Tatton Asset Management helps savers invest money more effectively and business runs smoothly.
The company works exclusively with independent financial advisors and offers them a range of investment portfolios that they can offer to their end clients.
There are 45 combinations to choose from, some focused on income, some focused on ethical considerations, some tracking interest rates and some mixing and matching various funds.
There are also actively managed funds and passive trackers, the most popular of which is a 50:50 mix of the two. Each category offers different options, from adventurous to cautious, depending on investors’ individual risk attitudes.
However, the fee is always 0.15 percent of assets under management, one of the lowest in the industry. Yet the returns are stable and consistent and compete with the best and most expensive advisory services. This mix of value and results has helped Tatton grow sales, profits and client numbers, with more than 1,100 advisers using the business on behalf of 140,000 savers.
One step higher: Tatton Asset Management works exclusively with independent financial advisors and offers them a range of investment portfolios that they can offer to their end clients
When Midas recommended the company in 2021, Tatton was managing almost £11 billion in assets and founder Paul Hogarth said he wanted to increase that figure to £15 billion by 2023.
He has far exceeded that target, now managing around £20 billion in savings and planning to take that to £30 billion over the next five years.
Hogarth was one of the first in his field to offer model portfolio services, which involves selecting and managing assets
experts, allowing advisors to offer their clients a lot of choice without the costs associated with individualized portfolios.
Tatton also has two other companies. Paradigm Consulting helps financial advisors stay on top of compliance and regulatory requirements, while Paradigm Mortgages helps advisors secure the best products for clients. The interim results to September showed good growth across the group, with assets under management increasing, new clients coming on board and more and more financial advisors choosing to use Tatton’s services.
City analysts expect more of the same, which will lead to rising sales and profits. For the year to March, sales are forecast to increase by 19 per cent to £44 million, rising to almost £50 million by 2026. Profits are expected to rise by almost 19 per cent this year to over £22 million, rising to almost £ Next year 26 million.
Hogarth, who owns 16.5 percent of the shares, is keen to provide decent dividends. About 19 cents are expected for the current year, rising to 22 cents in 2026.
Midas judgment: Tatton’s shares were at £4.95 when Midas recommended them in the summer of 2021. Today the stock is up 35 per cent at £6.74 and brokers remain bullish on the company. Investors looking for cash at the start of the year could sell their holdings and make some gains, but the shares should continue to yield, so most investors would be advised to hold on to them.
Traded on: Goal ticker: TAM Contact: tattonassetmanagement.com
DIY INVESTMENT PLATFORMS
A. J. Bell
A. J. Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund trading and investment ideas
interactive investor
interactive investor
Invest for a fixed amount from € 4.99 per month
Sax
Sax
Get £200 back in trading fees
Trade 212
Trade 212
Free trading and no account fees
Affiliate links: If you purchase a product, This is Money may earn a commission. These deals have been chosen by our editors because we believe they are worth highlighting. This does not affect our editorial independence.