Rathbone eyes further expansion into advice

Rathbone eyes further expansion into advice

Rathbone Brothers plans to grow its financial planning team as part of its nationwide expansion which has seen it add to its presence in Scotland, the North and London.

In its half yearly report, the asset manager stated it has hired key individuals to its financial planning team, and expected to add to the number of financial advisers throughout the rest of 2016.

It also plans to continue to progress its distribution strategy via further partnerships with IFA networks across the country, following its acquisition of advice network Vision in October 2015.

Article continues after advert

The business revealed it has invested in its operations in Scotland and the North, and dedicated full-time support to pursue opportunities in London.

During the first half of the year its Glasgow office, which opened in May 2015, secured more than £250m funds under management in just over a year of operation.

According to Rathbone its biggest risk in 2016 continues to be associated with its ambition to grow and develop the business, and also from regulatory developments impacting the sector.

The asset manager reported a 28 per cent hit to pre-tax profits to £22.8m for the six months ended 30 June, which it attributed the acquisition of Vision, and costs incurred in respect of its planned London office move to 8 Finsbury Circus.

Underlying profit before tax was down 5.1 per cent from £37.2m to £35.3m in the first six months of 2016.

Total funds under management at 30 June 2016 were £30.6bn, up 4.8 per cent from £29.2bn at 31 December 2015.

The company pointed out this compared to an increase of 4.2 per cent in the FTSE 100 index and an increase of 5.4 per cent in the FTSE WMA Balanced index over the same period.

Philip Howell, chief executive of Rathbone Brothers Plc, said: “Whilst turbulent market conditions and planned expenditure have impacted profitability, we continue to pursue our growth plans.

“In an eventful first half, our investment teams have worked hard to ensure that client communications are timely and insightful.

“Although our outlook is cautious, Rathbones will remain alert to acquisition opportunities that fit with our culture and philosophy.”