Funds grow at Rathbones
LIVERPOOL investment manager Rathbone Brothers has recorded a strong growth in managed funds but warned of a “mixed outlook” for 2011.
The firm, which has an office in Birmingham and traces its history back to 1742, said total funds under management were up 11% to £14.54bn from £13.1bn in December 2009.
This compared to an increase of 2.5% in the FTSE 100 Index and an increase of 4.4% in the FTSE APCIMS Balanced Index in the first nine months of 2010.
The underlying rate of net organic growth of funds was 5.7% in the third quarter and 4.6% for the nine months to September 30. Net operating income in the nine months was 8% higher at £84.8m.
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 more than £650m 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 very positive third quarter, with annualised net organic growth in funds under management of 5.7% and fee and commission income benefitting from rising investment markets.
“Whilst the recent equity market rally is welcome, economies remain fragile having yet to face the full effect of deficit reduction plans being implemented by many governments. Whilst this presents a mixed outlook for 2011, Rathbones continues to consolidate its position as a leading provider of high-quality, personalised discretionary investment management services and remains well positioned to take advantage of growth opportunities.”
