Acquisition pushes Rathbone's assets above 20bn pounds

published 14 May 2013

Investment management group Rathbone Brothers grew assets under management 8.9 per cent in the first quarter, and they now stand above 20bn pounds for the first time.

Boosted by more positive investment markets and the purchase of Taylor Young's private client business, net funds under management in the investment management business grew £368m in the first quarter to March 31st to £19.6bn and by the end of the month had risen to £20.1m.

The growth in assets included acquired inflows of £208m in the first quarter, which included £129m from Taylor Young's private client business.

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The remaining £160m of net organic growth in the investment management business represented annualised growth of 3.8%, up from 3.6% in the first three months of 2012.

Net operating income in the core investment management business of £41.6m was up 9.8% on the same period in 2012, which Rathbone noted was ahead of the 9.2% growth in the FTSE 100 index and the 8.8% growth in the FTSE APCIMS Balanced Index.

The non-core unit trust business saw funds under management grow 10.8% to £1.4bn in the quarter, with net inflows of £23m.

Chairman Mark Nicholls said Rathbone was well positioned to take advantage of healthier investment markets and future growth opportunities and the "outlook is positive".

Shares in Rathbone Brothers were down 0.6% at 1,490p at 09:21 on Tuesday.