AssetCo, the asset manager chaired by Martin Gilbert, has cut its losses and announced a rise in active equity assets under management to £2.8 billion from £2.4bn, despite industry-wide net outflows.

The company reported an improved operating loss of £3.3 million for the year to the end of September 2024, down from £7.7m the previous year, and a total loss of £2.5m, aided by tax adjustments.

Key initiatives included a joint venture with Jonathan Knowles, bringing nearly €400m in assets, and a consolidation of back-office services to State Street, achieving cost savings.

The company plans a reorganisation to trade separate business interests in River Global and Parmenion, subject to shareholder approval, and a name change to River Global.

It aims to provide greater flexibility for shareholders and better manage its distinct business lines.

Mr Gilbert, chairman, said: “The financial year ended 30 September 2024 was a challenging one for both the industry and AssetCo. Nonetheless our results for the year show us continuing to close the gap towards profitability with a significantly reduced operating loss for continuing business of £3.3m.

“UK investor funds under management in active equities experienced persistent net outflows across the industry amounting to some £20bn for FY23/24.

“The group is not immune to this and further action on cost saving is in hand as a result. This is facilitated in particular by the successful consolidation of certain back office services which, after some delay, was successfully achieved for the group’s open-end funds towards the end of February.

“We were pleased to see an encouraging start to our joint initiative with leading global fund manager, Jonathan Knowles, previously of Capital International Group – this being one of the two initiatives that we signalled with our interim results.

“The second such initiative, working with an established overseas wealth manager, is well advanced and we hope to commence operations later in our financial year.”

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