Rathbones Group is targeting acquisitions in 2023 despite suffering an £8bn fall in funds under management and administration (FUMA) to close out 2022 on £60.2bn.
In an announcement to the stock exchange, the firm said a strong balance sheet and clear direction means it is “well-placed to consider inorganic growth opportunities”.
In the 12 months to 31 December 2022, the firm’s investment management business suffered a 10.2% drop in FUMA to £45.1bn after starting the year at £50.3bn.
However, the group as a whole recorded £145m net inflows in the final three months of the year, while FUMA grew £2.2bn. The group’s discretionary and managed offerings attracted £347m of net inflows in Q4, totalling £1.3bn for the year.
Meanwhile, investors placed a net £323m into funds in Rathbones’ wealth management division in the final quarter of the year. The firm’s £2.1bn multi-asset offering also pulled £94m over the period.
The London-based wealth manager’s subsidiary Saunderson House was the only department to record net outflows in Q4, as investors pulled £67m.
Rathbones acquired Saunderson House in a £150m deal in 2021. Rathbones said: “The integration of Saunderson House is progressing in line with plan, with new propositions launched during the year beginning to be taken up by clients in the fourth quarter.”