Turbulent markets pushed down funds under management and operating profits at Rathbone Brothers but a flood of new money helped the UK wealth management company outperform its indices in the three months to September 30, writes Brooke Masters.

Total funds under management fell 5.7 per cent from £10.5bn to £9.9bn on June 30 compared with a 13 per cent fall in the FTSE 100 index. Net inflows were 7.1 per cent.

"The good news is we are continuing to grow even in difficult times. Being boring and stable is very helpful," said Andy Pomfret, chief executive.

The shares rose 150p to 930p.

Rathbone and other wealth managers have done better than many pure fund managers in the current turbulent times because they continue to earn money when clients switch from equities to gilts and cash.

Rathbone's income from fees dropped 9 per cent year on year in the third quarter and commissions sank 19 per cent. But interest income rose by more than 54 per cent as clients chose to sit on the sidelines.

Total operating income fell 4.3 per cent to £36.2m.

The unit trust business continued to underperform, as income fell 34 per cent.

Mr Pomfret said the volatile markets made the end-of-year results hard to predict because so much of the company's income comes from fees and the next round would be based on the size of funds under management on December 30.