Heartwood, the independently-owned firm specialising in providing investment and wealth management services for private clients and charities, today announced that it has recorded another year of strong growth in its core discretionary assets under management in the financial year closing end April 2011.

Heartwood now has over £1.38 billion of funds under management including £1.18 billion of discretionary assets as of 30 April 2011, a record level.  Assets under management increased by 21% year on year, as a result of strong investment returns and sustained growth in net new client funds. A 64% increase in charities’ funds under management was particularly noteworthy.

Net new discretionary assets under management from new and existing clients totalled £147m, an increase of 110% over that achieved in 2009/10. Significant new business flows were received into the new range of Heartwood Multi-Asset Funds which increased from £177m to £527m under management in the course of the financial year.

Simon Lough, Chief Executive Officer of Heartwood, said: “We have had a further year of sustained organic growth for the company. Our clients have continued to show every confidence in our services and afforded us really outstanding ratings in the recent survey we conducted – 92% confirmed they would recommend us to family and friends. ¹ This, together with good investment results, has been the main driver of the growth in the business.”

Heartwood continued to attract new talent in the course of the financial year with Michael Stanes joining as Senior Investment Director, Mark Wills and Diana Nicholls as Client Directors, Tabitha Roberts as head of Marketing and Lesley Britton as head of Tax Solutions.

Guy Hudson, Head of Client Services noted “This was another year of signature achievement for the firm, which was reflected in regular recognition in various wealth management awards. We were really delighted to be named Best Overall Wealth Solutions Provider – High Net Worth at the PAM Awards for the second consecutive year.”

The firm, which is over 90% owned by staff active in the business, has now moved its registered office to its new premises at 12 Henrietta Street in Covent Garden, London.

Lough noted: “Our new offices provide sufficient capacity for the next stage of the firm’s development, as well as offering a vastly improved environment at which to receive our clients.”

Regarding plans for 2011/12, Lough commented: “Meeting the investment and wealth management needs of our existing clients is our primary focus, along with finding and winning new relationships. After a period of significant investment in both our investment offering and our client service presence, we now have the infrastructure to support a larger and more profitable business.”

Lough continued ”We will continue to add selectively to our client facing team. We are always open to discussion with client directors in other firms who believe Heartwood would offer a more suitable home for them and their clients. In addition and following the success we have had in developing relationships with other professional firms in the last three years we are also interested in further extending our resources to address this important source of client referrals. Finally, we are evaluating other distribution channels for our investment capabilities given the success we have enjoyed with our Multi-Asset Funds thus far.”