Walter Scott & Partners keep it simple as equity portfolio manager sees profits and turnover rise

The firm, which is owned by Bank of New York Mellon, attributed its four per cent rise in turnover from £207.8 million to £215.2m last year to its “simple” business model.

A five per cent rise in pre-tax profits from £142.7m to £149.4m resulted in the firm’s profit margin remaining unchanged at 69 per cent while assets under management rose by £7.7 billion to £49.9bn.

Finance director Elizabeth Pearston said the results demonstrate “a simple business with relatively low fixed costs contributes to the maintenance of robust profit margins during volatile markets”.

She said the company’s strategy has remained unchanged since it was set up by nuclear physicist and former Ivory & Syme manager Walter Scott in 1983, with a focus on “delivering robust investment performance” during times of volatility.

“The business continues to target long-term annualised compound real returns of seven per cent to 10 per cent for the portfolios is manages,” she said.