16th Oct 2014 07:36
LONDON (Alliance News) - Rathbone Brothers PLC Thursday reported a 10% increase in funds under management during the third quarter, buoyed mainly by its acquisition of Jupiter Asset Management Ltd's private client and charity investment management business, and it said its outlook remains positive.
The fund manager said total funds under management stood at GBP26.3 billion at the end of September, up from GBP23.9 billion at the end of June, with the acquisition of the Jupiter businesses adding GBP1.9 billion.
It said total net inflows into Rathbone Investment Management over the third quarter were GBP2.41 billion, with GBP2.12 billion of that coming from acquisitions. Its underlying annualised rate of net organic growth was 5.3% for the third quarter, down from 5.6% a year earlier, contributing to a rate of 4.7% for the first nine months of the year, flat on the first nine months of 2013.
Funds under management in its Rathbone Unit Trust Management business stood at GBP2.3 billion at the end of September, up 4.5% from GBP2.2 billion at the end of June. Net inflows were GBP100 million in what it described as a difficult third quarter for the industry, compared with GBP91 million a year earlier.
Rathbone's net operating income for the quarter was GBP49.0 million, up from GBP43.2 million a year earlier. Underlying net operating income in the Rathbone Investment Management business was GBP45.1 million, up from GBP40.3 million a year earlier.
Net interest income rose 9.5% on the years to GBP2.3 million, from GBP2.1 million, largely reflecting larger deposit balances and interest income from loans to clients.
"Our outlook remains positive as we respond to the ongoing changes in the industry and continue to invest to ensure that we have the infrastructure and resources to support our growth objectives," Chief Executive Philip Howell said in a statement.
Rathbone shares were up 0.9% at 1,895.00 pence early Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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