Rathbones Group’s funds under management and administration (FUMA) grew 1.1% to £60.9bn in the quarter to 31 March, which CEO Paul Stockton (pictured) attributed to positive market and investment performance.
It follows an £8bn decline in the 2022 financial year to £60.2bn.
In the first quarter of the year, the firm’s investment management division attracted net inflows of £164m. Wealth management pulled in a net £303m, representing a 2.6% annual growth rate. This was mainly down to a net £240m flowing into the discretionary service and another £191m into bespoke portfolios.
However, net operating income fell 2.2% from the same period last year, down to £117.8m from £120.5m. Investment management fees also fell to £69.5m, a 3.7% decline due to lower FUMA from the £72.2m recorded in Q1 of 2022.
In its annual results at the end of last year, the firm said it was “well-placed to consider inorganic growth opportunities”. It swiftly followed up on this by announcing an £839m deal for Investec Wealth’s UK arm at the beginning of April.
Stockton said: “Rathbones remains on track to meet the operating margin targets provided in the 2022 preliminary results, supported by the successful delivery of Saunderson House synergies and the launch of an enhanced digital capability.
“Over the coming months Rathbones expects to complete the combination with Investec that was announced on 4 April, subject to regulatory approvals. The Prospectus and Circular in relation to the combination will be published later this quarter. This transaction represents a significant opportunity in our sector to become the UK’s leading discretionary wealth manager.”