Profits surge at Rathbone Brothers

LIVERPOOL investment manager Rathbone Brothers has seen half-year pre-tax profits jump by 11.3% to £15.8m.

The firm, which traces its history back to 1742, said total funds under management in the six months to June 30 at Rathbone Investment Management were up by 1.5% to £13.29bn.

Net operating income at the firm rose 6.1% to £55.9m.

Rathbones’ growth has been helped by last year’s acquisition of the Bank of Scotland’s Portfolio Management Service from Lloyds Banking Group.

So far the deal has pumped £665m into the firm’s managed funds, but it also says organic growth has also played a significant role.

Chief executive Andy Pomfret said: “Rathbone Investment Management had a strong first half, benefitting from good growth in funds under management, stronger equity markets and commission levels. Organic and acquired growth in our investment management business was an annualised 9.9% in the six months to 30 June 2010 (2009: 7.8%).

“The volatility in world markets which has been experienced in the first half seems likely to continue for the rest of this year. We consider that in this investment climate Rathbones is ideally placed to attract new clients seeking a sound investment process and discretionary investment management provided on a personal basis by qualified, named individuals. We have a strong balance sheet and are confident of Rathbones’ ability to deliver further growth.”