Rathbones funds up, revenue down

Lower interest rates hitting investment revenues cut income at fund manager Rathbones in the three months to September.Overall, net operating income fell 6.5% to £29m in the quarter, though total funds under management were £12.17bn, up 16.3% from £10.5bn at the end of 2008. Interest income fell by 56% to £3.4m, offsetting growth in fees and commissions.Net organic growth of funds under management in Rathbone Investment Management was 7.2% for the three months (2008: 3.8%) and 6.4% for the nine months ended 30 September 2009 (2008: 6.6%).Rathbones has also agreed to buy parts of Lloyds Banking's legacy discretionary investment management assets and HBOS' discretionary investment management activities for £35.4m. Rathbone