Revenues boosted at wealth manager following acquisition

Wealth managment

Wealth manager Rathbones now has £47.3bn worth of funds under management following the acquisition of a rival firm.

Liverpool based Rathbones issued a trading update for the three months up to September this morning.

Chief executive Philip Howell said: “Our continuing growth and the acquisition of Speirs & Jeffrey on 31 August 2018 helped our total funds under management increase to £47.3 billion at 30 September 2018.

“This increase in scale places us in a strong position to continue to improve our service to clients and, mindful of recent volatility in investment markets, to maintain our disciplined investment in the business.”

In August Rathbones completed the acquisition of Speirs & Jeffrey for an initial consideration of £104m.

This included £79m in cash and the issue of 1,006,522 new ordinary Rathbones shares to Speirs & Jeffrey shareholders.

Further contingent consideration and earn-out payments may also be payable depending upon the achievement of certain targets.

Total funds under management, including £6.7bn from Speirs & Jeffrey, were £47.3b at 30 September; up 18.5% from £39.9bn at 30 June or up 1.8% excluding the impact from the Speirs & Jeffrey acquisition.

This compared to a decrease of 1.7% in the FTSE 100 Index and an increase of 1% in the MSCI WMA Private Investor Balanced Index in the three months ended 30 September.

Underlying net operating income was £80.3m for the period, up 13.9% from £70.5m in the same period last year.
Net operating income of £70.8m was 13.3% higher than the £62.5m for the comparable period in 2017.

Funds under management in Unit Trusts were £6bn up 3.4% from £5.8bn in the second quarter.

Net inflows for the quarter were £121m compared to £342m a year ago, reflecting a more difficult trading environment for asset management generally.

Net operating income of £9.5m was 18.8% higher than the £8m for the comparable period in 2017.

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