Shares dip after turmoil hits Close Brothers assets

ANALYSTS responded cautiously after banking group Close Brothers said assets under management had sunk £1bn during the last quarter.

Close said its asset management arm had fallen to a small loss. The division was running £8.6bn of cash at the end of October, down 10.4 per cent from 31 July.

The banking division saw good demand for its specialist lending services and recorded strong growth.

Average bargains per day at Close’s Winterflood brokerage had been broadly in line with the previous year but income per bargain was much lower, reflecting market turmoil and a change in mix driven by lower risk appetite among retail investors.

Ian Poulter at Canaccord said the banking business was “flourishing” but the securities arm had been hit by difficult market conditions.

Shares closed down 2.81 per cent at 675.44p.