Heartwood, an independently-owned firm specialising in providing investment and wealth management services for private clients and charities, has recorded another year of strong growth in its core discretionary assets under management in the financial year closing end April 2012.
With GBP94.8m of net new funds from clients, Heartwood now has GBP1.46 billion of funds under management, up from GBP1.38bn last year, including GBP1.24bn of discretionary assets. Heartwood’s multi-asset funds (MAFs) experienced the most substantial inflows.
Now making up nearly half (48%) of total funds under management, the MAF range totals GBP603m. EBITDA was up 40% to GBP3.23m – a record for the business.
Simon Lough, Chief Executive Officer of Heartwood, says: “We have experienced yet another year of strong performance, and have maintained significant inflows despite challenging economic headwinds. These inflows show the confidence that our clients have in us, and have been the major driver of growth within the company. This year has also seen us receive the second fastest growth in charity funds under management amongst 50 leading firms1.”
In light of Heartwood’s significant growth, the firm has reorganised its client-facing divisions to enable a dual focus on private clients and intermediaries, developing propositions and service models that match the differing requirements of each.
Heartwood Private Wealth Management, led by Simon Dixon, will service Heartwood’s private clients. It encompasses wealth structuring, tax, pensions and estate planning expertise together with investment management and advice. Heartwood Investment Management, led by Noland Carter, will have two roles: it will continue to manage the investment management proposition for clients of Private Wealth Management; and will also have responsibility for distribution channels targeting intermediaries and professional advisers.
Simon Lough says: “Providing the best possible service to our clients remains paramount to our success. Our recent reorganisation allows us to tailor our offering to the specific and differing needs of private clients and intermediaries. It has now been over a year since our relocation to our new head office in Covent Garden, which has provided a sound base to accommodate growth.”
Over the last year, Heartwood has introduced a number of new offerings. Launched in February 2012, Heartwood’s Defensive MAF represented the sixth fund to be launched in the multi-asset range since December 2009, complementing the Balanced, Balanced Income, Cautious, Cautious Income, and Growth Funds. It aims to preserve the capital value of a portfolio predominantly through holding lower risk assets. Heartwood has also launched its Professional Intermediaries channel, expanding its offerings to IFAs and advisers. It now has over GBP60m of AUM with intermediaries, who can access the portfolios through eight fund platforms and two model platforms. The proposition enables all IFAs’ clients to access Heartwood’s investment process via funds, models and discretionary service. Heartwood has also established two private OEICs to meet the needs of ultra high net worth clients.
Heartwood continued to attract new talent during the year, including the appointment of Mark Rockliffe to support its investment management proposition as Head of Intermediary Sales.
Lough says: “Our strong performance this year was recognised by winning the award: Total Wealth Solutions Provider – High Net Worth for an unprecedented third year in a row at this year’s Private Asset Management (PAM) awards, widely regarded as the “Oscars” for the investment industry. We continue to attract talented individuals to our team, reflecting the continuing demand we are experiencing for both wealth and investment management services.”