Shares digital

This week’s interims from Close Brothers (CBG) point to some tricky times ahead for private client wealth managers. Close has a sizeable private client asset management division and gives the first feel for how the private client segment has behaved this calender year.

The company reported funds under management (FUM) down 2% to £8.9 billion by 31 January. On Thursday (6 March) Rathbone Brothers (RAT) will publish its finals. A trading update on 10 January saw Rathbone reporting zero FUM growth between 30 June 2007 and 31 December – now analysts will be keenly watching out for news in the results how business has been during its first quarter.

Brewin Dolphin (BRW) painted a similar picture, when it revealed in an interim management statement (IMS) on 30 January, zero growth in FUM during its first quarter to 31 December. Rensburg Sheppards’ (RBG) own IMS on 6 February, covering its third quarter, gave no update on FUM since September. An IMS from Charles Stanley (CAY) on 24 January, revealed its wealth management division saw FUM only inch up during its third quarter to 31 December.

Shares says: Looks like earnings downgrades are on the way but shares have already fallen sharply so if you’re still in there hold.

HOLD Close Brothers, Rathbone Brothers, Brewin Dolphin, Rensburg Sheppard, Charles Stanley

by: Simon Keane