Edinburgh Partners hit by profits dip but market shift leaves managers upbeat

Edinburgh Partners, the fund management house headed by chief executive and co-founder Dr Sandy Nairn, has reported a fall in revenue and profits after a fall in funds under management.

Latest accounts show revenue of £28.44 million for the 12 months to February 28, down from £34.41m in the prior financial year.

Edinburgh Partners had £6.89 billion of average funds under management in the year to February, down from £7.34bn in the prior 12 months.

Operating profits fell from £17.67m to £13.97m. Pre-tax profits declined from £17.39m to £15.98m.

However the firm, chaired by merchant banker Sir Angus Grossart, stressed a pick-up in investment performance and asset inflows.

Dr Nairn said Edinburgh Partners were among investment houses that have endured a “bit of a hard time” during a period in which growth stocks had performed very well.

However, signalling a view that equity markets had moved back in favour of value managers, he added: “I think that turned in the middle of last year, and our performance numbers have picked up a lot. Normally, you get a lagged effect on business flows on the back of that and we are beginning to see that. I am pretty optimistic about where we are.”