Thursday 16 July 2020 9:40 am

Gresham House reports spike in assets under management

Investment firm Gresham House reported a £467m spike in assets under management (AUM) in the first half of the year, despite tough market conditions due to the coronavirus crisis.

Gresham House’s AUM grew 17 per cent to £3.3bn over the six months to 30 June 2020, of which £283m was organic growth. The group said the figure was “at least in line with market expectations”.

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The specialist alternative asset management firm’s real assets business contributed the bulk of growth during the period, adding £360m through net flows, performance and funds acquired. 

The firm’s public equity assets swelled 63.6 per cent in the half-year, while its private equity funds saw negative growth of 17 per cent due to both performance and the termination of the firm’s LMS Capital contract.

The group’s best performer was its infrastructure and housing business, which grew 128.5 per cent in the six months to June, although only forestry saw positive performance across the firm, adding £72m.

Gresham House said the performance reflected “the relevance of our investment strategies despite challenging market conditions and is underpinned by the growing interest in specialist and sustainable investment”. 

The company reported a strong balance sheet position, with cash of £22m and no debt, as the company shifted to “business as usual” over the pandemic, with employees able to work from home and no member of staff furloughed.

Tony Dalwood, chief executive of Gresham House, said: “We are pleased with the performance in the first half of the year against an unprecedented backdrop and expect to remain at least in line with market expectations on the current trajectory for 2020.

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“Our natural focus on ESG principles together with strong market positions, investment performance and balance sheet continue to support growth as we fundraise to meet client demand across our sustainable and open-ended investment strategies.

“The performance of Gresham House in the first half of the year has been testament to the resilience and quality of the team, working in challenging conditions, and we look forward to building on this in the second half of 2020 and beyond.”

Analysts at Jefferies said: “While performance was negative in most segments… net flows were positive everywhere but in forestry which had a small redemption. [Gresham House] is very well positioned for the trends towards real assets and allocations to managers with strong ESG credentials.”

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