Cautious 2010 outlook for Rathbone

7th Jan 2010 07:30

Fund and wealth management operator Rathbone Brothers saw funds under management rise in 2009 despite net redemptions in its Unit Trust division.Total funds under management (FUM) at the end of 2009 stood at £13.1bn, up 25.2% on the £10.46bn at the end of 2008.The investment management arm saw FUM rise 29.0% from £9.43bn at the end of 2008 to £12.16bn at the end of 2009. Over the same period the FTSE 100 index rose 22.1% and the FTSE APCIMS Balanced Index grew 12.7%.The unit trust division saw FUM dip to £0.94bn at the end of 2009 from £1.03bn a year earlier, largely due to net redemptions of £234m.‘Equity markets rose markedly in the second half of 2009, but the outlook for 2010 remains uncertain as the UK faces an environment of exceptionally low interest rates and an election before June 2010,’ the company said.Rathbone Brothers said that following its agreement with Lloyds Banking Group in October 2009, the company has received consent from 2,352 former Bank of Scotland Portfolio Management Service clients, to switch their portfolios to Rathbone’s management.The total represents around 60% of the total number of the Bank of Scotland clients covered by the transfer, and covers around £425m of funds under management (at 31 August values). Of these funds, £381m have been included in Rathbone’s total funds under management at 31 December 2009.‘The full benefit of the transaction with Lloyds Banking Group is not expected to arise until 2011; meanwhile Rathbones continues to grow organically and remains well capitalised,’ the company said. The board said it intends to pay a second interim dividend in lieu of a final dividend in May 2010.