29th Jul 2020 10:37
(Alliance News) - Rathbone Brothers PLC said Wednesday its funds under management shrunk in the first half of 2020 but were still higher than the year before thanks to a strong Unit Trusts business performance.
Shares in Rathbone Brothers were up 7.9% at 1,635.27 pence in London in morning trading.
The London-headquartered wealth manager's total funds under management and administration as at June 30 came to GBP49.4 billion, a 2.0% decline from GBP50.4 billion at the end of 2019. In the same six month period the FTSE 100 index fell 18% and the MSCI PIMFA Private Investor Balanced index was down 6.3%.
More positively, however, FUMA at the end of June was still higher year-on-year compared to GBP49.2 billion as Unit Trusts business FUMA increased to GBP8.0 billion from GBP6.7 billion the year before. This offset the decline from its Investment management business to GBP41.4 billion from GBP42.5 billion.
The company posted a higher pretax profit of GBP27.3 million, up from GBP20.0 million, thanks to a combination of lower acquisition costs as well as higher fee and commission income. Operating income grew to GBP179.0 million from GBP172.7 million.
Rathbone Brothers ultimately decided to maintain its interim dividend at 25 pence per share, which it said reflects confidence in its medium-term prospects as well as the strength of its balance sheet.
Stockton said: "Our strong first half performance is testament to the strength of our brand, our market position and our people. Our business model has proven to be resilient, agile and adaptable throughout the duration of the Covid-19 pandemic, with little to no impact on business continuity.
"Whilst we expect investment markets to remain volatile and interest rates to remain lower for some time to come, our balance sheet is robust with a strong capital position. We are well placed to continue delivering on our organic growth strategy, balancing investment in the business with prevailing market conditions, maintaining strict cost discipline and identifying inorganic growth opportunities that fit our culture."
By Anna Farley; [email protected]
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