Rising interest rates, inflation and the pandemic’s lingering effects contributed to outflows from the UK equity strategies of River Global, one of the company’s main underlying businesses.

Mr Gilbert stated cautious optimism that market activity may pick up amidst tentative signs of improvement. He has built up AssetCo through acquisitions since leaving Standard Life Aberdeen (now abrdn) in 2018 after spearheading its £11 billion merger with Aberdeen Asset Management.

AssetCo’s active assets under management dipped to £2.4bn as investors moved to debt and cash. The firm cut costs and exited loss-making businesses amidst uncertain macroeconomic conditions from the Ukraine war, Brexit, inflation and sluggish pandemic recovery. It sold interests in Rize ETF as well as River and Mercantile Infrastructure LLP.

Although exiting some early-stage operations, AssetCo expanded its Scottish footprint by acquiring SVM Asset Management in Edinburgh. It consolidated operating facilities there, realising cost efficiencies. Other acquisitions included Ocean Dial Asset Management and River and Mercantile’s remaining UK equity operations after selling its US business.

All equities activities now operate under the River Global brand. Assetco removed £2.3m in costs and identified £2-3m in further potential savings.

Mr Gilbert said: “Rising interest rates, inflation, and the residual impact from the pandemic have all contributed to large net retail outflows from UK equities in particular, estimated at £13.6bn, accounting for 39% of total net outflows across the industry over the period.

“Assetco has not been immune from this pressure and River Global saw outflows from a number of its investment strategies, particularly UK equities.

“The challenging backdrop has required us to take definitive action and we have cut costs in our equities business and moved to exit other early-stage or loss-making businesses. That has, unfortunately, required us to take significant write-downs.

“The remaining equities business has been simplified and consolidated, however, and it is encouraging to see an improvement in our fee rates as unprofitable funds have been merged or closed and inflows have been added at higher fee rates than outflows.”