LONDON (ShareCast) - - FUM up 16.3 per cent YoY
- Double digit income growth in both divisions
- Net operating income up 26.6 per cent

Funds under management (FUM) rose strongly year-on-year for Rathbone Brothers in the first quarter, with the impact of recent acquisitions taking the figure even higher.

Before taking acquisitions into account, total FUM stood at £22.8bn at the end of March, up 3.6% on the preceding quarter and up 16.3% on the same period last year.

Adding the recent acquisitions of Jupiter Asset Management's private client and charity investment management business and Deutsche Bank's London private client investment management business, based upon their values at March 14th and February 21st respectively, this would increase total FUM by approximately 12.3% to £25.6bn.

Rathbones Chairman Mark Nicholls said the acquisitions were "progressing well" and are "expected to have a positive effect on earnings in 2015".

Net operating income rose 26.6% to £54.7m, with growth coming from both Investment Management (IM) and Unit Trust Management (UT).

Total FUM in the IM business saw net annualised growth rate of 6.1% to £309m, including acquired inflows of £98m and net organic growth of £211m for the quarter. Underlying net operating income in IM jumped 11.3% to £46.3m year-on-year.

The UT arm grew FUM 16.7% to £2.1bn on the preceding quarter, with net inflows of £222m during the quarter. Underlying net operating income at UT was up 45.8% year on year to £3.5m.

The group noted that in late March it sold its stake in London Stock Exchange Group, resulting in a gain of £5.9m being recognised in net operating income in the quarter.

And in early May, Rathbone acquired London law firm Rooper & Whately to add depth to the range of its advisory services.

Shares in Rathbones were up 0.5% to 1,947.5p at 08:50 on Wednesday.

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