Rathbone Brothers reports on 'robust' quarter

Rathbone Brothers announced a trading update for the three months to 31 December on Thursday, with trading in the period described as “robust”, reflecting a rally in investment markets and positive transaction volumes.

The FTSE 250 firm reported total funds under management at period end of £34.2bn, up 17.1% from £29.2bn a year earlier.

Funds under management in the Investment Management book were £30.2bn, up 15.7% from £26.1bn, while the FTSE 100 Index increased 14.4% and the FTSE WMA Balanced Index increased 13.6% over the same period.

Total net inflows in Investment Management for the fourth quarter were £292m, down from £368m year-on-year, while the total for the year was £1.2bn, softening from £1.4bn).

The underlying rate of net organic growth in funds under management in Investment Management for the three months was 2.9%, down from 3.7% a year earlier, and 2.9% for the year as a whole, from 3.0% in 2015.

Funds managed by Unit Trusts were £4bn at 31 December, up 29.0% from £3.1bn at 31 December 2015.

Total net fund inflows there totalled £125m in the fourth quarter, down from £165m, though they were £554 million for the full year, which was up from £371m.

“Despite the market rally in the last quarter of 2016, political and economic uncertainty could particularly impact investment markets in 2017,” Rathbone’s board said in a statement.

“We expect to pursue planned growth initiatives in the coming year and continue to prioritise expenditure that enhances our client service and upgrades our infrastructure.

“We retain an appetite for acquisitions that fit our culture and look forward with cautious optimism.”

Rathbone Brothers said it will issue its preliminary statement of annual results for the year to 31 December 2016 on 23 February.