Rathbone Unit Trust Management inflows plummet 68%


Net inflows at Rathbones Unit Trust Management dropped from £338m in 2014 to £107m in the first half of 2015.

In its half year results, reported today, the group says the drop in inflows “represents a relatively strong performance when compared to the industry that saw an increase in outflows in all sectors in which we have funds”.

In addition, funds under management in the unit increased by £200m to £2.7bn at the end of June, from £2.5bn in December 2014.

Underlying operating income in the unit rose 37 per cent to £10m from £7.3m in the first half of 2014.

In October last year, the wealth manager acquired Jupiter Asset Management’s private client and charity investment arms for £40m, which contributed to the increase in assets.

The group says: “As expected, our overall organic growth rate has been softened this year by recently-arrived teams whose priority is their existing clients rather than pursuing new business.

“In light of the size of acquisitions made in 2014, this has been a significant factor this half year. Adjusting for this, we estimate that the annualised net organic growth rate would be 3.2 per cent.”

Over the six months to 30 June, the group reported a 4 per cent increase in total funds under management to £28.3bn, and underlying profit before tax was up 27 per cent to £37.2m.

Rathbone Brothers chief executive Philip Howell says: “In the first half of 2015, we have been working steadily towards our strategic goals. In a period when markets made little progress, we continued to grow both organically and through acquisition, adding a combined total net funds under management of £0.7bn in the first half. The full benefit of 2014 acquisitions is reflected in our 2015 half year results.

“We will continue to invest in the skills and systems necessary to deliver our strategic plans and achieve our growth objectives. We face the future with cautious optimism.”