Rathbones announces increase in its funds
INVESTMENT manager Rathbone Brothers has announced an increase in the amount of funds now under its management.
The firm, which has offices in Birmingham and Liverpool, said the total funds under management at December 31, 2010 were £15.63bn, up 19.3% from £13.10bn as of the end of 2009.
The figures come against a 9.0% increase in the FTSE 100 index and a 9.3% increase in the FTSE APCIMS Balanced Index over the same period.
Acquired inflows of funds under management into Rathbone Investment Management Ltd totalled £0.60bn in the year (2009: £0.55bn) which when added to net organic growth represents a net annual growth rate of 10.2% (2009: 12.5%).
The underlying annualised rate of net organic growth in funds under management in Rathbone Investment Management Ltd was 5.3% at the year end (2009: 6.7%).
The FTSE 100 Index ended 2010 at 5900, making the average index 5528 on quarter end billing dates (2009: 4706).
Cash held in client portfolios at the end of the year was £0.8bn (2009: £0.8bn).
Funds managed by Rathbone Unit Trust Management Ltd rose to £1.04bn at year end from £0.94bn at the end of 2009, an increase of 10.6%. Total net fund inflows in Q4 were £18.3m.
Rathbones said it had also been made aware of industry discussions with the Financial Services Compensation Scheme (FSCS) in respect of a proposed interim levy on the Investment Fund Management sub-class following the failure of Keydata Investment Services Ltd.
Although a levy would adversely impact all retail investment management firms, Rathbones said it had had no direct communication with the FSCS so would, if necessary, make an announcement as to the amount and timing of a charge should it arise.
In outlook it said 2010 had ended on a more buoyant note with the UK equity market reaching a year’s high.
“UK equities continue to attract support in view of the strength of the balance sheets of many major companies and their earnings outlook as well as the favourable yield comparison with low yielding government and corporate bonds,” it said in a trading update.
“Provided the deficit reduction measures now being implemented in the UK and elsewhere do not precipitate a ‘double-dip’ recession, Rathbones can look forward with cautious optimism.”
The firm, which said it remained well placed to take advantage of growth opportunities, issues its annual results for the year ended December 31, 2010 on February 17.
