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Rathbone buys success

Buoyed by acquisitions, Rathbone Brothers delivered a robust full-year performance
February 20, 2015

Against a backdrop of economic uncertainty and volatile investment markets, Rathbone Brothers (RAT) managed to grow its funds under management by 24 per cent to over £27bn in 2014 and attract more than 5,000 new clients. The resulting higher fees and commissions at the fund manager - whose clientele runs the gamut from private investors to charities and trustees - drove a 14 per cent rise in underlying operating income to £201m.

IC TIP: Hold at 2182p

Rathbone has made the most of industry consolidation and larger companies' propensity for selling off non-core businesses, acquiring £3.2bn in funds from Jupiter Asset Management and Deutsche Asset & Wealth Management in the period. Moreover, its unit trust management division posted a 39 per cent rise in funds under management to £2.5bn and doubled its underlying operating margin, helping Rathbone to widen its group underlying operating margin to 30.6 per cent.

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