London-listed wealth management house Rathbone Brothers said its net operating income in Rathbone Investment Management was £27.3 million ($41.1 million) for the first three months of the year, down 4.5 per cent on the first quarter of 2008.

The firm’s total funds under management were £9.87 billion at 5 April 2009, down 5.6 per cent from £10.46 billion at 31 December 2008. The underlying annualised rate of net organic growth of funds under management was 5.8 per cent for the first three months of 2009, compared to 7.6 per cent for the same period of the year before.

Within Rathbones’ unit trust business, funds under management fell from £1.029 billion at 31 December 2008 to £755 million at 31 March 2009. This decline reflects market falls and net redemptions of £182 million, which included the withdrawal of two mandates totalling £130 million, the firm said.

"Rathbone Investment Management continues to perform well with organic growth remaining strong at 5.8 per cent, notwithstanding significant market uncertainty in the first quarter of 2009, which is likely to continue," said Mark Powell, chairman of Rathbone Brothers.

"Our plans to restructure the range of funds in our unit trust business are well-advanced and have been well-received. Initiatives supporting previously announced cost reductions have been completed."

From these cost-reduction initiatives Rathbones expects to achieve cost savings of £0.8 million in 2010.

Headquartered in London, Rathbones has nearly 700 staff based in 10 UK locations and Jersey.