Fund manager Tavistock Investments PLC (LON:TAVI) reiterated its commitment to pay a maiden dividend this fiscal year despite trading being below expectations.
The company said that funds under management (FUM) and earnings are still expected to grow significantly in the year to the end of March, albeit not as rapidly as management had hoped.
The new company said great strides have been made in the development of the business during the year, with the launch of two new protected products and significant investment in the development of i-stock, the company's direct-to-consumer smartphone app. Strategic partnerships have also been signed with Lighthouse Group and the Law Society. All of these initiatives are expected to bear fruit during the next financial year.
The new funds are protected by high watermark contractual guarantees from Morgan Stanley, Tavistock noted, adding that the initial market response to these funds “has been extremely positive”; the current challenge is to organise distribution to the widest possible audience, to which end considerable progress is being made, the company added
Meanwhile, the i-stock app is on schedule to be released by the end of the year, providing customers with the ability to open both ISA and general investment accounts to invest in a protected portfolio with a 90% guarantee underwriting its highest ever value.