Steady as she goes for wealth management group Rathbones
Wealth management group Rathbone Brothers announced a first quarter increase in net operating income of 6.8% today.
In a trading update for the period from January 1 to March 31, the firm, which has a significant operation in the Port of Liverpool Building on the city’s waterfront, the firm said trading had been solid
Chief executive Philip Howell said: “Although investment markets fell back a little in the first quarter of 2018, trading was solid with net operating income up 6.8% from the same period last year.
“Total funds under management fell 3.3% to £37.8bn during the quarter, compared with decreases in the FTSE 100 Index and the MSCI WMA Private Investor Balanced Index of 6.4% and 3.8% respectively.”
The firm announced that total funds under management were £37.8bn at the end of the first quarter, down 3.3% from £39.1bn at December 31, 2017.
Underlying net operating income was £75.4m during the quarter, up 6.8% from £70.6m from the same period last year.
Total net organic and acquired growth in Investment Management was £199m during the quarter, compared with £318m during the same period last year, representing a total net annualised growth rate of 2.4%, down from 4.2% a year ago, and reflecting some marginally higher outflows.
Net organic growth in the first quarter represents an annualised growth rate of 2%, compared with 3.3% in the first three months of 2017.
Net operating income of £66.6m in Investment Management for the first quarter of 2018 was 5.2% higher than the £63.3m for the comparable period in 2017.
The value of the FTSE 100 Index on the first quarter charging date was 7200, compared with 7332 a year ago. The MSCI WMA Private Investor Balanced Index remained unchanged at 1538 on the equivalent dates.
Rathbones said Unit Trusts experienced strong net inflows of £142m during the quarter, up from £109m the previous year.
These were offset by market performance resulting in funds under management remaining stable at £5.3bn.
However, net operating income of £8.8m for the three months ended March 31, was 20.5% higher than the £7.3m for the comparable period in 2017.
