Charles Stanley profits dented by higher costs

 
Marion Dakers

FUND manager Charles Stanley has warned that a surge in IT, risk and consultancy costs has pushed its annual profits 10 per cent below forecasts, despite assets under management hitting a record high.

The London-listed firm said funds under management and administration rose 13.5 per cent since last year to a new high of £20.1bn.

However, costs linked to the rules changes within the Retail Distribution Review have dented earnings, and the firm said it was looking to review its cost base over the next year.

The firm said it was “pleased with progress” at Charles Stanley Direct, which offers individual investors a way to manage their own portfolios and now has 15,000 clients and £200m of new funds. Charles Stanley was also hopeful about the new rules on savings announced in last month’s Budget.