InvestmentsJan 13 2015

Rathbones hit with loss of two large mandates in Q4

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Rathbones hit with loss of two large mandates in Q4

Rathbone Brothers’ growth was hit by the loss of two large mandates in the final quarter of 2014, though it still recorded an overall increase in assets.

Total funds under management at the wealth manager rose by 3.4 per cent in the final three months of 2014, but the growth was down from the same period in 2013 due to lower inflows and poorer market returns.

The discretionary management business saw organic net inflows of £105m in the period, a sharp decline from the £307m new business seen in the final quarter of 2013.

Rathbones said the lower organic growth was due to “the loss of two large lower margin accounts”.

However, the firm looked to make up for the slowing organic growth by bringing in £222m in assets through acquisitions during the quarter.

In a trading statement, Rathbones said it remained positive for the firm’s outlook, though it expects “investment markets to continue to be volatile in 2015”, and said it was on course to meet expectations for revenue and profit.

Numis said the asset growth was in line with expectations, with the acquired funds making up for slower than expected organic growth, and maintained its hold recommendation on the firm, commenting that its current share price was “fair”.