Rathbone Group’s funds under management and advice increased from £105.3bn to £108.8bn during Q3 of its financial year, according to a trading statement published today (17 October), marking a 3.3% increase.
Net flows remained mixed, with both the firm’s wealth management and asset management arms seeing gross inflows of £7.6bn and £3.4bn respectively. However, gross outflows for both arms weighed in at £8bn and £2.8bn. This means that Wealth Management suffered net outflows of £891m overall, while Asset Management saw net flows of £567m.
In terms of intra-group holdings, net outflows amounted to £826m meaning that, overall, group outflows came to £1.2bn.
Assets under management increased due to market and investment performance. For the wealth management arm, this added £3.9bn to assets under management while, for the asset management arm, performance contributed £2bn.
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At a service level, Rathbones Investment Management saw its funds under management and administration increase by 1.1% from £51.4bn to £52.4bn, while Rathbones discretionary and managed portfolios also grew by 1.1%, from £54.4bn to £55.4bn. While both of these business arms suffered gross outflows of more than £1bn each, which outweighed respective net flows of £143m and £147m, integrated assets, as well as market and investment performance, pushed asset growth into the black.
Paul Stockton (pictured), group chief executive officer of Rathbones, said: “The integration of Investec Wealth & Investment (IW&I) has progressed at pace throughout the summer, and we remain focused on actions that support the delivery of the financial goals we set ourselves at the outset.
“Over 80% of clients have been asked for their consent to move their accounts to Rathbones Investment Management from IW&I and response rates are very positive. Run-rate synergy realisation grew to £25.5m at the end of the third quarter, significantly ahead of the first-year post-combination objective of £15m.”
Stockton said net flows over the quarter “reflected the resilience of gross inflows despite the impacts of managing a significant client consent process”.
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“Gross outflows have been impacted by the completion of Saunderson House migration, alongside some of the macroeconomic and specific factors we have seen, and which have impacted the industry this year,” he explained.
“The potential for taxation changes in the forthcoming Autumn budget has created a heightened opportunity for us to engage positively with our clients and Rathbones remains well positioned to support clients to make the decisions needed to achieve their financial goals.”
