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Rathbones grows despite investor wobbles

The wealth manager managed an uplift in funds under management, despite warning of investor circumspection
February 24, 2017

Uncertainty among retail investors is a familiar story post-referendum. For Rathbone Brothers' (RAT) investment management business, new inflows during 2016 were flat on the previous year. The good news was that fewer people withdrew their funds, resulting in net organic new business of £0.8bn, up from £0.7bn. Management says the wealth manager has experienced a similar level of hesistancy among retail investors since the year-end.

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That core segment also benefited from £0.4bn of funds acquired, as a result of the 2015 purchase of financial planning company Vision. However, this was down from £0.7bn the previous year. Costs associated with this acquisition - as well as the relocation of the group's head office - dragged on statutory pre-tax profits. But with market movements helping, investment management funds increased to £30.2bn, up £4.1bn on 2015.

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