The company's funds under management grew 4.8 per cent over the six months to £30.6 billion at the end of June, of which £27.3 billion was managed by its investment management segment and £3.3 billion by its unit trusts segment. Meanwhile, the FTSE 100 Index climbed 4.2 during the first half and while the FTSE 100 Index benefited from sterling weakness, the FTSE 250 fell 6.6 per cent.

Rathbones noted in the management report that its investment teams faced some “particularly turbulent market conditions, compounded by the uncertainties surrounding Brexit and mixed signals in many economies”. 

Underlying operating income in investment management of £108.8 million was up 1.9 per cent from a year earlier, mostly due to growth in funds under management. However, higher fixed staff and direct costs pushed operating expenses up 6.7 per cent year-on-year to £84.9 million.

“Whilst turbulent market conditions and planned expenditure have impacted profitability, we continue to pursue our growth plans. In an eventful first half, our investment teams have worked hard to ensure that client communications are timely and insightful,” said Philip Howell, chief executive of the company.

“Although our outlook is cautious, Rathbones will remain alert to acquisition opportunities that fit with our culture and philosophy.”

In May, Rathbones partnered with Credit Suisse to develop the proposition of its recently launched private office. Earlier this month, it hired three client directors for the unit, which Rathbones said should “welcome clients towards the end of this year”.