Unit trust business drives Rathbone’s growth

Unit trust business drives Rathbone’s growth

Inflows into the unit trusts run by Rathbone's drove growth in the assets under management (AUM) last year,

The company said the unit trust part of the business managed £5.3bn at 31 December 2017, an increase of 32 per cent on the number to 31 December 2016.

Net inflows for this part of the business were £272m, more than double the £125m of net inflows for the same period in 2016.

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During the year the Rathbone Ethical Bond fund grew to more than £1bn.

Total assets under management for the company at the end of December 2017 were £39.1bn, an increase of 11.9 per cent.

Stuart Duncan, analyst at Peel Hunt, said the update "beat expectations" and he has upgraded his view of the shares of Rathbone to a buy, from his previous forecast of hold.

Rathbone Brothers PLC share price is up 6p to £25.38 at the time of writing.

Mr Duncan said his target price for the shares is £28.