Rathbones funds reach £15bn

FUNDS under management at investment manager Rathbone Brothers topped £15bn for the first time last year.

The Liverpool firm, whose Birmingham office in Temple Row opened in 2008, said funds grew by 19% or £2.53bn during the year to December 31, reflecting £1.24bn of new net organic and acquired funds.

Rathbones drew comparison with the FTSE 100 which increased by 9% over the period and the FTSE APCIMS Balanced Index which grew 9.3%.

Pre-tax profits from continuing operations rose by 2% to £30.1m. This figure was dented by a £3.6m payment the firm had to make to the Financial Services Compensation Scheme as part of an industry-wide levy to help cover the cost of major investment failures at firms such as Keydata Investment Services and Wills & Co.

Chairman Mark Powell said: “I greatly regret having to report to our shareholders a significant deduction from our profits arising from FSCS levies caused by what appears to be mis-management in a different part of the financial sector over which Rathbones has no control or influence.

“Rathbones continues to exhibit the ability to grow both organically and by attracting high quality investment managers with experience.”

The board has recommended a final dividend of 28p, taking the total for the year to 44p, up 5%.