Rathbones toughs it out

Rathbones (RAT) is poised this year to be reshaped as a large, combined full-service financial services company after its agreed majority merger with Investec’s UK wealth arm. As with many other managers, rising interest rate income from cash holdings managed to offset the volatility of performance fee income. In Rathbone’s case, interest income was £23mn in the half, compared with £6mn the year before. This, combined with positive inflows, although lower than last year, meant that total funds under management were £1.6bn higher at £60.5bn, which under the circumstances was a solid performance in an otherwise lacklustre year for the asset management industry.