Jupiter and Rathbone finding it pays to stay single in M&A merry-go-round

Adding up: Jupiter and Rathbone buoyed assets by more than expected

Michael Bow11 January 2018

Funds groups Jupiter and Rathbone showed the benefits of staying solo on Thursday after assets under management comfortably beat City estimates.

Big money funds manager tie-ups such as Standard Life Aberdeen and Janus Henderson have prompted expectations of more mergers in the sector.

But the results show Jupiter and Rathbone in rude health staying single.

Sales growth at both increased in the final quarter, with Jupiter luring £570 million. Assets under management rose to £50.2 billion, well ahead of analyst forecasts from Jefferies.

Rathbone’s assets under management increased to £39.1 billion at the end of December, ahead of estimates from City broker Liberum, after organic inflows increased.

Increasing regulation and cheaper tracker funds have triggered fears fund groups need to get bigger to survive. but a string of good results from smaller fund firms such Liontrust and Premier Asset Management this week question that strategy.

Another boutique fund firm, Polar Capital, had strong figures today with assets under management rising to £11.7 billion from £9.3 billion at the end of March.

Rathbone was due to merge with Smith & Williamson but tie-up talks collapsed in August.