Wealth management firm Rathbone Brothers has reported that funds under management grew to £47.5bn in the first three months of this year, despite weak growth in its Investment Management business.
Total funds under management were up 7.7 per cent to £47.5bn from £44.1bn at the end of last year, the firm said in a trading update this morning.
However, the growth rate for the firm’s investment management arm was 0.1 per cent, down from the two per cent rate reported last year due to weak investor sentiment and the continued integration of wealth manager Speirs & Jefferey, which Rathbones acquired last August.
Rathbones chief executive Philip Howell said: “Whilst we expect weak investor sentiment to continue in the short term, we continue to provide our clients with quality investment and advice solutions whilst pursuing future growth”.
Total operating income increased 13.1 per cent to £85.3m from £75.4m in the first quarter of last year, and investment management income increased 15.3 per cent to £76.8m.
Net inflows more than halved from £142m last year to £59m this year, which the company said was a “positive result amid an industry backdrop of negative net retail sales”.