WALTER Scott & Partners, the Edinburgh-based fund manager that is owned by Bank of New York Mellon, said its “simple” business model was to thank for it posting modest increases in turnover and profitability in 2016, writes Margaret Taylor.
The firm, which manages equity portfolios for institutional investors, reported a four per cent rise in turnover from £207.8 million to £215.2m.
A five per cent rise in pre-tax profits from £142.7m to £149.4m resulted in the firm’s profit margin remaining unchanged at 69 per cent while assets under management rose by £7.7 billion to £49.9bn.
According to finance director Elizabeth Pearston the results demonstrate that “a simple business with relatively low fixed costs contributes to the maintenance of robust profit margins during volatile markets”.
She said the company’s strategy has remained unchanged since it was set up by nuclear physicist and former Ivory & Syme manager Walter Scott in 1983, with a focus on “delivering robust investment performance” during times of volatility.
“The business continues to target long-term annualised compound real returns of seven per cent to ten per cent for the portfolios is manages,” she said.
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