Rathbone Brothers


Rathbone Brothers is one of the UK's leading providers of investment management services with £18bn f.u.m. and over 35,001 clients.


Doing the right things well
Published: Feb 22 2013

Rathbone Brothers is well known as one of the UK's leading providers of investment management services with £18bn f.u.m. and over 35,000 clients.
Results for 2012 were predictably satisfactory, coming 2% ahead of the consensus forecast despite last month's IMS having already alerted us to the impressive 13.4% rise in Assets under Management. 
Prospects for the current year are generally encouraging for several reasons. They are continuing to grow, winning charity and private clients, opening two new branches in Newcastle and Lymington and expect to acquire more teams.
At the current price, Rathbones are on 2013 PER of 16.1x and a yield of 3.3% historic, 3.7% prospective. Still higher rated, because lower risk, than Brewin Dolphin or Charles Stanley but better value than the equity market and far better than gilt-edged.


Foreign buyers gorging on UK stocks

Document can be downloaded here: UK plc ‘going for a song’

Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.

Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.

What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.

According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.

Happy investing. Published 27th August 2019