LONDON (ShareCast) - (Sharecast News) - Wealth manager Rathbone Brothers posted a rise in funds under management on Thursday but revealed a lower-than-expected level of organic growth in its investment management business during the first quarter due to muted investor demand.
Rathbones' investment management unit saw net organic growth of 0.1% in the three months ended 31 March, a marked drop on the 2% growth rate seen a year earlier.

The FTSE 250 constituent told investors the figures were a result of "weak investor sentiment" and that it "anticipated muted growth" from the recently acquired Speirs & Jeffrey as it continues to focus on integrating the business.

However, assets under management and administration increased 7.7% to reach a new high of £47.5bn in the quarter, while net operating income rose 13.1% to £85.3m, reflecting the acquisition of Speirs & Jeffrey and the 10.7% increase in the FTSE 100 as a whole since the start of 2019.

Outgoing chief executive Philip Howell said: "Whilst we expect weak investor sentiment to continue in the short term, we continue to provide our clients with quality investment and advice solutions whilst pursuing future growth opportunities."

Howell added that the integration of Speirs & Jeffrey had proceeded well during the quarter, with the group now expecting operational performance targets in respect of the initial contingent consideration to be met "very shortly" and ahead of its original schedule.

As of 0900 BST, Rathbone shares had slipped 0.81% to 2,440p.

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