Against a backdrop of “relatively benign” investment markets in the third quarter, the investment manager’s unit trust arm and ethical investment offering were the biggest drivers of client inflows.
In the three months to 30 September, its unit trust division took a record £342m in net inflows, more than double the level of positive flows it posted the year prior. This took its total funds under management (FUM) to £5bn.
The firm’s total FUM climbed 2.5% to £37.5bn, with its investment management arm making up £32.5bn.
Over the third quarter, its unit trusts produced net operating income of £8m, 19.4% higher than the comparable period in 2016.
In July, Rathbones confirmed that the margins of its unit trust business would be hit by its decision to absorb all the research costs previously charged to its funds.
The firm said its ethical investment service, Green Bank, also achieved a “strategic milestone” during the quarter, with FUM hitting the £1bn mark.
The FTSE 250 investment manager also confirmed that its future involves both organic growth and acquisitions.
After its recent failed attempt to merge with fellow peer Smith & Williamson, the firm’s chief executive, Philip Howell, emphasised that the group intends to keep its options open for future M&A opportunities.
“We continue to progress our strategic initiatives and invest in our core infrastructure to support client service and meet the demands of forthcoming regulation,” said Howell. “We are well positioned for the future and will continue to pursue growth opportunities both organically and through acquisition, approaching each with discipline.”
