Despite the fall Tilney said the business, due to be rebranded as Evelyn Partners this summer, performed well in Q1 against a difficult economic backdrop.

Assets under Management (AUM) were £55.8 billion at 31 March 2022, down £1.9bn on the 4th quarter of 2021 but still up significantly from the £51.6 billion figure recorded in Q1 2021.

In a trading update for the three months ended 31 March the group reported operating income of £146.9 million, up 9.3% compared to the same period last year (Q1 2021: £134.3 million). This was driven by increased assets under management year-on-year, as well as good performance by the Professional Services business, it said.

Gross new business inflows, however, were £1.4 billion in the first quarter, down on the £1.7bn seen in Q1 2021. 

Net new business inflows were £0.5 billion in the first quarter, the same as Q1 2021.

Chris Woodhouse, group chief executive, said: “The business has continued to perform well despite a more challenging market backdrop, with excellent performance across our Financial Services and Professional Services businesses. 

“We reported a small dip in AUM in the first three months to £55.8 billion as a result of tougher market conditions, with global equities, as measured by the MSCI World Index, declining 5.5% over the quarter. However, net organic inflows remained positive and consistent with last year at £0.5 billion, equivalent to 3.2% of opening assets on an annualised basis. Group operating income grew 9.3% compared to Q1 last year, with a particularly strong performance from our Professional Services business.

“Earlier this year we announced the consolidation of our brands under a new name – Evelyn Partners. The reception from clients and employees has been very positive, and we remain on track to move to the new brand in the summer. Ahead of this, we have also just completed our move into our new headquarters at 45 Gresham Street in the heart of the City of London.”

The group’s direct to consumer arm Bestinvest is being relaunched as a hybrid digital service combining free investment coaching with “best-in-class goal planning and analytical tools.” It will also offer competitively priced ready-made portfolio, Tilney said. The new look Bestinvest went live last week. 

Mr Woodhouse said: “We regard this as a great example of putting our purpose – ‘to place the power of good advice into more hands’ – into practice, giving more people an opportunity to receive the support they need to achieve their financial goals, at great value for money.”

The group is continuing to extend its succession programme which gives financial advisers who are approaching retirement an opportunity to find a new long-term home for their clients.  

He said: “We have a very strong pipeline of interest in the programme and yesterday were pleased to announce that the teams from Edinburgh based Capital Risk Management and MP2 Financial have joined the group.”