The fund management industry is a strange hybrid of companies that manage piles of assets so large they can be seen from the moon. Some seen to trade purely on their name, while others find a distinct niche. Rathbone Brothers (RAT) falls into the latter category. It can is a specialist fund manager and advisory business with a share of roughly 3.8 per cent of the total UK wealth management market.
- Acquisition to improve performance of advisory business
- A long-standing ESG presence chimes with market trends
- Strong growth in funds business
- Not too big to be an acquisition target itself
- Parts of the business are growing at different speeds
Because of its manageable size, there is a distinct possibility that Rathbone could itself become a target for a larger predator. As things stand, Rathbones looks like it could be the most engaging investment prospect in the asset management industry – and one which isn’t guarded by a high rating for the shares