Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to play it.

Two men reading the FT
Rathbone’s sales grew by an annual 11% between 2015 and 2020
(Image credit: © Getty Images)

The wealth-management industry tends to keep a low profile. So many investors may not have noticed that while several parts of the financial sector have been under pressure from competition and digitalisation, the subsector that helps people preserve and grow their fortune has managed to keep growing at a strong rate.

A report by investment bank Morgan Stanley and management consultant Oliver Wyman predicts that the industry could manage $104trn of assets globally by 2024, up from $79trn in 2019. Soaring asset prices mean that there is more wealth to preserve, while an ageing population (as well as the gradual demise of final-salary pensions) produces more people in need of financial advice.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri