Waverton Investment Management enjoyed a bumper 2021. Pre-tax profits were up 46 percent to £12 million and revenues increased 17 percent to £50.3 million.

Speaking to thewealthnet, chief executive Nick Tucker said he was very happy with the results. What was “particularly pleasing” was that the growth was consistent across all four of the firm’s business lines.

All four segments: private clients; charities; adviser solutions; and institutional clients, surpassed their 2021 growth targets.

The private client division grew 16 percent to £5.5 billion, while adviser solutions increased 74 percent to £1.8 billion.

This success was underpinned by “great performance” from the firm’s investment team. According to data from ARC, Waverton has achieved first quartile returns for all mandates – which encompass a range of risk profiles - over all time periods when compared to a group of its peers.

The investment piece is “at the epicentre” of everything the firm does, Mr Tucker highlighted. The firm will look to keep building out this team to make sure it stays ahead of the game.

Another contributor to the firm’s growth was its acquisition of Cornerstone Asset Management in April 2021. The Scottish wealth manager not only added around £500 million assets under management, but it also helped increase Waverton’s regional footprint. This is something the firm is keen to target and keep expanding.

Mr Tucker is also focused on “future proofing” Waverton to make sure it remains a key player in the wealth management market for years to come.

This involves increasing operational resilience and scalability. As part of this, Waverton has developed its partnership with Microsoft, which offers regular IT security updates and training to increase security awareness across the business and help ensure clients receive a high level of protection.

The firm is also open to developing its technology offering and is always looking to improve the experience for both clients and employees.

To achieve this, Waverton has entered into a strategic partnership with SEI, which is the foundation that provides the platform on which new services can be developed.

Any technological enhancements will always be an ‘added extra’ rather than replacing the existing client service, which is currently well received. 

Waverton conducted its first client survey in five years in 2021, which delivered largely positive feedback. The firm received a Net Promoter Score (NPS) of 70, compared with an industry average of around 40.

“Our bedrock has always been client service and client focus,” Mr Tucker explained. “If it will work for the client, it will work for the business.”

Waverton has also been working on explaining its strategic objectives and goals to its employees, so they truly feel they are part of the business.

Mr Tucker said one of his aims since taking over as chief executive in February 2020 was to make sure the “future growth drivers” really feel part of the business.

The majority of these are now shareholders and have an active input into the direction of the firm.

If Waverton is to retain its top talent, “the aspirations of the business need to match the aspirations of our people.

“That’s a really positive reason to grow,” Mr Tucker emphasised

Overall, Mr Tucker wants to create a “greater sense of purpose and direction” for all employees and he believes the firm is well on its way to achieving this.

“It always helps when things are going well. We cannot take it for granted.”

The last quarter has been challenging. The war in Ukraine and rising inflation have contributed to difficult market conditions.

Despite this, Waverton still grew in this period. Net new assets totalled £240 million in Q1.

“You really find out the strength of a firm when things go wrong,” Mr Tucker argued. 

He believes Waverton is well positioned to weather these storms and that the strength of the investment team will become clear.

“Huge amounts of mental energy” has been spent discussing the likelihood of different scenarios and how to react to these. 

Combined, the investment team resembles a “balanced barbell”, Mr Tucker explained. The team comprises seasoned professionals with decades of experience as well as dynamic, younger colleagues who bring lots of energy and ideas to the table.

“This leads to very dynamic debates”, said Mr Tucker. 

So far, the firm has evolved its portfolios. A year ago, they were very growth orientated, now they strike more of a balance between value and growth. 

“It is all about dynamism. It is not about sitting back on your laurels.” 

Mr Tucker noted that in some firms investment managers start finger pointing and blaming when the going gets tough. This strongly goes against Waverton’s ethos and strategy, which is focused on collaboration and working together to achieve a positive outcome.

It is “vital” to have a collaborative culture to navigate the continual challenges and changes the industry faces, Mr Tucker argued.

“You cannot be complacent,” Mr Tucker warned. “These markets can make you look very stupid very quickly.”