Charles Stanley warns on profits as it offloads Dixon's Matterley fund

Charles Stanley has warned its next round of results will miss market expectations as the business continues to feel the squeeze on its commission income, while in a separate move it said it had sold Henry Dixon's Matterley fund to Miton Group.

Charles Stanley said in a statement this morning that despite improving fee income and discretionary funds, declining commission fees and its spend on Charles Stanley Direct had continued to hit profit margins in July and August. "The poor performance of commission income caused by low transaction volumes, and the continuation of costs relating to the upgrading of quality of service and the roll out of our direct to client proposition, all put pressure on profit margins," it said. "Whilst management have taken actions to reduce the cost base and boost income the Board now expects that...