BUSINESS LIVE: Trading platform assets soar; Hipgnosis strategic review; Fund firms struggle for inflows

Kin and Carta, which advises companies on technology strategies, is the latest company to be targeted by private equity predators

Private equity has pounced on another London-listed company, dealing a fresh blow to the stock market.

Man Group and Schroders have followed Liontrust with reports of weak or negative changes in their assets under management, as the fund management sector battles weaker sentiment and choppy market conditions.

Man Group has recorded $700 million in new investor inflows in the three months to the end of September, missing analyst expectations of $800 million but lifting assets under management to $161.2 billion.

Meanwhile, Schroders reported a drop in assets under management during the third quarter, dragged down by weak investor sentiment amid volatile market conditions.

Schroders’ assets under management fell to £724.3 billion in the period, from £726.1 billion at the end of June.

Music investor Hipgnosis Songs Fund will begin a strategic review to “consider and identify changes that will focus on recovering and delivering greater value for shareholders.”

The move comes three days after one of Hipgnosis’ shareholders tried to scuttle the London-listed firm’s $465 million deal to sell some of its music catalogs to a group backed by private equity firm Blackstone. .

The investment trust told investors this morning:

‘The Strategic Review will analyze all options to consider for the future of the Company with the aim of maximizing value for shareholders, including, among other things, a review of the future management arrangements of the Company.

‘The Board continues to recommend voting in favor of the Continuation Resolution, believing that it is in the interest of shareholders to have a Strategic Review with the widest range of options for the Company to consider and identify changes that will focus on recovering and delivering improved results to the shareholders. worth.’

AJ Bell and Hargreaves Lansdown have seen assets under management rise this year as weaker market sentiment fails to derail trading platform growth.

HL on Thursday gained 8,000 net new customers for the first quarter, fewer than the previous three months due to falling investor confidence, and £600m in new assets. It now has net client assets of £134.8 billion.

Meanwhile, AJ Bell’s assets have soared 68 per cent over the past year thanks to strong client inflows and investment returns.

Michael Summersgill, CEO of AJ Bell, said: “I am pleased to report another year of continued organic growth for AJ Bell, with the number of customers using our platform increasing by over 50,000 thanks to our quality of service, value exceptional and ease of use. -Products to use.

‘Our dual-channel model, which meets the needs of advised and DIY investors, has once again demonstrated its strength by delivering over £4 billion of net inflows to our investment platform. This contributed to an 11% increase in platform assets under management which ended the year at a record £70.9 billion.’