Charles Stanley, Brooks Macdonald and Rathbones Investment Management all saw net outflows during Q3 2020, although the market recovery from the Covid-19 sell-off has helped buoy assets over the period.
Charles Stanley faced net outflows across each of its discretionary, advisory and execution-only businesses totalling £0.3bn. But market performance contributed £0.5bn to assets under management taking the total at 30 September to £22.8bn, an increase of 0.9% compared to the prior quarter.
At Brooks Macdonald, net flows offset market performance driving AUM down £33m, or 0.2%, during the quarter to £13.7bn.
Only the £1.6bn international business enjoyed net inflows over the period bringing in £39m, which along with investment performance resulted in a 3.9% uplift in that part of the business. The £8.3bn bespoke portfolio service was the only other business division to see its AUM increase, albeit only by 0.1% as £119m of net outflows were offset by investment performance.
Brooks Macdonald chief executive Caroline Connellan (pictured) said: “The first quarter of our financial year has been in line with expectations. I am pleased with the strong investment performance we delivered, continuing to protect our clients’ wealth, as well as positive flows in international as we continue to reinvigorate the business.”
At Rathbones, total AUM climbed £0.3bn at the group level to £50.5bn due to strong growth in the unit trust business, but the investment management division saw net outflows of £0.2bn over the period. That included £153m of low margin mandates and execution only business as well as a further part withdrawal of a short-term mandate that had already been signalled.
Nevertheless, Rathbone Unit Trust Management had a bumper quarter bringing in £0.4bn, and taking AUM from £7.4bn to £8.7bn over the quarter. On an annualised basis that represents 19.6% of opening funds under management.
The trading update said the Rathbones Global Opportunities, Ethical Bond and multi-asset funds had enjoyed particularly strong net inflows.
“While the medium-term impacts of the pandemic are likely to weigh on investor sentiment for some time, we continue to convert more client assets to our discretionary service, invest in technology, and attract high quality investment professionals to support our future growth,” said Rathbones chief executive Paul Stockton.
“Our balance sheet remains robust, placing us in a strong position to support the ongoing safety and well-being of our colleagues and communities, identify inorganic opportunities that fit our culture, and deliver long term value to our clients and shareholders in a structurally growing UK wealth management market.”
