18th May 2016 06:50
LONDON (Alliance News) - Wealth manager Rathbone Brothers PLC on Wednesday said its funds under management grew in the first quarter, though its underlying net operating income declined amid market volatility.
Rathbone said funds under management at the end of March totalled GBP29.3 billion, up from GBP29.2 billion at the end of December and from GBP28.9 billion a year earlier. The group secured total net growth in funds under management in investment management of GBP234 million in the quarter, representing 3.6% net annualised growth, which was slower than the similar 6.5% growth achieved a year before. Net inflows were GBP134.0 million in the quarter, added to GBP100.0 million in net organic funds growth.
Fee income for the quarter grew to GBP37.7 million from GBP34.8 million, but Rathbone's underlying net operating income for its investment management business fell to GBP53.5 million from GBP54.7 million due to a volatile period for the FTSE 100 index, which hit commission income.
Commission income for the quarter was down to GBP9.8 million from GBP14.4 million, off 32% due to lower trading volumes and settlement values.
"Our growth initiatives remain important for us to maintain our position as a leading discretionary wealth manager. Accordingly, the board has decided to pursue these longer-term initiatives in spite of our expectation that markets will continue to lack direction in the short term. Rathbones remains alert to acquisition opportunities that may arise as a consequence of these market conditions," said Chairman Mark Nicholls.
By Sam Unsted; [email protected]; @SamUAtAlliance
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