Rathbone Brothers says strong balance sheet gives it confidence for future

The Port of Liverpool Building

Liverpool-based wealth management group Rathbone Brothers saw total funds under management and administration (FUMA) increase by 0.2% to £50.5bn during the first nine months of the year.

In a third quarter trading update this morning the business, which operates out of the Port of Liverpool Building on the city’s waterfront, also reported strong net operating income of £87m in the third quarter period to September 30.

Chief executive Paul Stockton said: “Funds under management and administration reached £50.5bn at 30 September 2020, as growth and strong investment performance more than offset the adverse effect of weaker financial markets during the first nine months of the year.

“Net operating income of £87m in the third quarter was strong – Q3 2019: £86.3m – in light of persistently low interest rates and year-on-year falls of 20.8% and 5.8% in the FTSE 100 and MSCI PIMFA Private Investor Balanced Indices, respectively.

“The performance of our Unit Trusts business continues to be very strong, delivering an annualised rate of net organic growth of 19.6% in the third quarter.”

He said: “Whilst the medium term impacts of the pandemic are likely to weigh on investor sentiment for some time, we continue to convert more client assets to our discretionary service, invest in technology, and attract high quality investment professionals to support our future growth.

“Our balance sheet remains robust, placing us in a strong position to support the ongoing safety and wellbeing of our colleagues and communities, identify inorganic opportunities that fit our culture, and deliver long term value to our clients and shareholders in a structurally growing UK wealth management market.”