Financial Planning and professional services firm Evelyn Partners saw assets under management and advice (AUM/A) rise 13% year-on-year to £62.7bn at 30 September.

The new record comes despite a drop in net asset inflows in the third quarter to £0.2bn (Q3 2023: £0.6bn).

The firm attributed the drop to the closure of its legacy execution-only service which led to £353m in outflows.

Evelyn Partners said the discontinuation would only affect the third quarter figures. Overall gross outflows of assets for the quarter were £1.7bn.

The execution-only arm was a legacy business which has not taken on new clients for 14 years and is not related to Evelyn partners Bestinvest execution-only arm.

The financial services business, which includes the firm’s Financial Planning operations, saw assets rise to a record high.

Paul Geddes, group CEO of Evelyn Partners, said record assets were the result of strong new business generation, continued net inflows of new client money and positive markets.

He added that he expected flows to improve for the firm as the Budget offered opportunities for high levels of engagement with clients.

He said: "In-line with other wealth managers, gross outflows have been elevated this year but, excluding the one-off impact on flows of a legacy service we discontinued, there was an underlying reduction in outflows in Q3. With inflation easing to 1.7% last month and further interest rate cuts on the horizon we expect the flow environment to continue to improve.

"Speculation about tax rises and potential changes to pensions in the new Government’s upcoming Budget on 30 October has seen very high levels of engagement with clients. While it is unclear at this stage precisely what changes will emerge, as an advice-led business we believe that this will present an opportunity to support even more clients with expert financial planning alongside the management of their investment portfolios, as well as tax advice for both businesses and private clients."

Gross inflows of new assets in the quarter were £1.9bn, higher than each of the previous two quarters and consistent with the same period last year (Q3: £1.9bn). Year-to-date gross inflows were £5.4bn, equivalent to an annualised growth rate of 12.2% based on opening assets.

Group operating income for the quarter rose 11% year-on-year to £181.8m, with increases across each of the firm’s three operating segments (financial services, professional services and fund solutions.

For the first nine months of 2023, group operating income rose 10.6% year-on-year to £542.6m.

Evelyn Partners is a Financial Planning, wealth management and professional service group, created following the merger of Tilney and Smith & Williamson in 2020. With £62.7bn of assets under management (as at 30 September 2024) it one the largest UK wealth managers and also the seventh largest UK accountancy firm ranked by fee income (source: Accountancy Age 50+50 rankings, 2023).

It has a network of offices across 30 towns and cities in the UK, as well as the Republic of Ireland and the Channel Islands. Through its operating companies, the group offers financial and professional services to individuals, family trusts, professional intermediaries, charities, and businesses.

It has been on the expansion trail in 2024. The firm acquired three offices and 150 staff from Northern accountancy firm Haines Watts in August, the acquisition of which completed during the third quarter.