StockMarketWire.com - Rathbone Brothers has reported total funds under management and administration decreased by 15.4% to £42.6bn at the end of the first quarter, as total net inflows were £0.7bn.

Chief executive Paul Stockton said it was 'a resilient performance against a market backdrop where the FTSE 100 Index fell 27.4% in the first quarter'.

Funds under management in its investment management business were £35.9bn at the end of the three months to 31 March 2020, down from £43bn at 31 December 2019, and were £6.8bn in the unit trusts business, compared to £7.4bn at the end of 2019.

The group reported that net organic flows in investment management were nil during the first quarter, as gross organic inflows in investment management of £1bn in the first quarter, up 18.9% from the same period last year, were offset by total gross outflows of £1bn, driven by the part withdrawal of previously reported short-term mandates and the re-balancing of certain pension scheme portfolios.

Total underlying net operating income of £84.6m for the three months ended 31 March 2020 was 'consistent with last year', Rathbone Brothers said. Investment management fees declined 9.7% compared to the prior year, while it reported that commissions were 29% ahead.

Clients from the Personal Injury and Court of Protection business of Barclays Wealth joined the group at the end of the quarter, representing £0.4bn of funds under management.

It confirmed the final dividend for 31 December 2019 of 45 pence per share will be paid on 12 May 2020.

At 30 April, total funds under management and administration were £46.5bn, an increase of 9.2% from 5 April 2020.

Stockton said: 'The second quarter has started well with total net organic inflows during April 2020 of £0.4bn.

'There remains a great deal of uncertainty around the duration and severity of the pandemic, and we expect that global market conditions will remain volatile and interest rates low.'



At 8:38am: [LON:RAT] Rathbone Brothers PLC share price was +15p at 1475p



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