Flywheel spinning smoothly

Tatton’s FY21 results highlight strong momentum in the business. Current AUM inflows have returned to pre-Covid levels and now average £100m per month, with the £9.0bn AUM milestone reached on 31 Mar (subsequently surpassed, reaching £9.5bn on 15 June). That translated to 35% AUM growth for FY21 (AUM 31 Mar 20: 6.7bn).

Tatton hasn’t gone unnoticed by investors. Its market cap has now surpassed £1/4bn, up around 70% y-o-y. However, its valuation compared to peers is still not demanding.

While it is a top-quartile performer when it comes to AUM inflows (as a % of opening AUM), its price-earnings ratio of 27* is below the peer median of 32, and far below its highest rated peers which have PE ratios well north of 40. If it continues to deliver, Tatton will surely appear on more and more investors’ radar screens going forward.