Martin Gilbert's new venture AssetCo now has £2.4billion under management - but has booked a £7.7million loss amid "exceptionally difficult" conditions for asset managers.
Rising interest rates, inflation and the residual impact from the pandemic have all contributed to large outflows from UK equities funds.
Mr Gilbert said AssetCo was "not immune" from these pressures, but said there were tentative signs that the market was turning.
The firm cut £2.3million of costs during the financial year and has identified a further £2-3millon in cost savings which are currently in action.
'Decisive action'
City veteran Gilbert noted the cost savings programme has required the firm to take “significant write-downs”, which have impacted results for the year.
This meant its loss for the year, including exceptional items and discontinued businesses, widened to £26.7million from £8.5million the year before. Excluding exceptional items it widened to £7.7million from £7.5million.
Mr Gilbert added: "The challenging backdrop has required us to take definitive action and we have cut costs in our equities business and moved to exit other early stage or loss-making businesses.
"That has, unfortunately, required us to take significant write-downs which have impacted our results for the year. The remaining equities business has been simplified and consolidated however, and it is encouraging to see an improvement in our fee rates as unprofitable funds have been merged or closed and inflows have been added at higher fee rates than outflows.
"The further action we are taking on costs has enabled us to identify between £2million and £3million per annum of additional cost savings actionable over the coming months which, together with the addition of Ocean Dial revenues, gives us a potential path to financial profitability, subject of course to reasonably stable markets and assets under management."
'Financial strength'
However, Mr Gilbert said there are signs that market activity is picking up, and that the group's main businesses have the strength and agility to weather the current climate.
He added: "The uncertain global economic and political backdrop continues to weigh on financial markets, although there are tentative signs that overall market activity may finally be picking up.
"The company's main underlying businesses - River Global and Parmenion - have the financial strength, support and agility to weather current conditions.
"Our management teams have a wealth of expertise and a range of products and capabilities which enables them to capitalise on opportunities as well as meeting the needs of our existing investors and we continue to see the future potential."
Mr Gilbert was previously chief executive of Aberdeen Asset Management, which was merged with Standard Life in 2017 to become the recently-renamed abrdn.