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European Wealth plans pivot to pension management

European Wealth plans pivot to pension management

European Wealth hopes to build on its current fixed income franchise to develop a broader institutional investment business as it pivots from purchased to organic growth, the group has said.

In its interim results for the six months to the end of June, the company reported a loss of £800,000, up from £500,000 the previous year.

The business, which tapped outside investors for £9.8 million in new equity in June to pay down debt, said the increase was due to higher funding costs, as well as an unspecified £309,000 one-off cost.

The company had earlier taken on short-term bridging finance in order to repay a tranche of convertible loan stock.

‘Following the refinancing in July and the subsequent repayment of debt, interest charges will fall substantially in the second half of the current year,’ the business noted.

Assets under management within investment management division rose 25% over the period from £933 million to £1.17 billion, just over half of which was run by the company’s fixed income team.

Across the group overall assets under management rose 18% over the period to £1.74 billion.

Company chair Kenneth West said that after completing a refinancing, the business hoped to replicate the success of its bond team with an equity franchise, building on its range of Dublin Ucits portfolios.

‘With a much stronger balance sheet and new supportive shareholders, the Group will be in a position to continue to expand, with a particular focus initially on the institutional capability within the investment management business,’ said West.

‘It is the board's intention to expand its offering through the introduction of an equity service to the institutional marketplace together with exploring the possibility of launching additional institutional style funds using our UCITs structure in Dublin.’

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