Rathbones tempts clients to invest more leading to a boost in revenues

HEALTHY stock markets led to an inflow of money at wealth manager Rathbones in the third quarter, with funds under management increasing by 11 per cent since the end of last year, but warned that the next year looks “mixed” for the wealth manager.

The total amount of funds under management stood at £14.54bn at 30 September 2010, up from £13.1bn at 31 December 2009. The fair winds in the markets also led to a 22.5 per cent in increase in income from fees over the first three quarters, and a 30.2 per cent increase in commissions over the same period. Income from interest was 54.8 per cent lower than the £16.8m earned in the corresponding period in 2009, due to reduced yields on treasury assets.

CEO Andy Pomfret was cautious about the prospects for the coming year. “Whilst the recent equity market rally is welcome, economies remain fragile having yet to face the full effect of deficit reduction plans being implemented by many governments,” he said, adding that this presented a “mixed outlook for 2011.”

Net operating income was £84.8m for the nine months ending on 30 September 2010, 8 per cent higher than 2009. The wealth management firm’s unit trust arm increased from £0.88bn at 30 June to £0.95bn at 30 September.

Income was £84.8m for the nine months ending 30 September 2010, eight per cent up on 2009. Rathbones underlined its stability, pointing out that its Tier 1 ratio is 26 per cent, way above the Basel III minimum of seven per cent.