Rathbones expands despite the gloom

Jul 25 2008 by Alex Turner, Liverpool Daily Post

Funds under management decreased 8.6% to £12bn in the six months to June 30.

This compares favourably with the 12.9% fall in the FTSE-100 index in the same period and a 9.8% fall in the FTSE/APCIMS Balanced Index, regarded by Rathbones as the index which most closely reflects the spread of investments held by its private investor and trustee clients.

New business increased by 8.2% and Rathbones also benefited from providing liquidity to the market, especially as the inter-bank lending rate, Libor, has, been significantly higher than the base rate.

Its Liverpool office has funds under management of £1.5bn and is attracting significant new business to its charity division and its ethical investment arm, Greenbank, launched in May.

Mr Morris said: “It’s swings and roundabouts. We benefit from running high levels of liquidity for clients, but in less volatile times we might see a higher level of turnover in clients’ accounts, which generates greater returns from commissions.

“We face the medium and long-term future with guarded optimism.”

alex.turner@dailypost.co.uk