The third quarter of 2022 could signal a turning point for FTSE 250 investment and wealth manager Rathbones which reported a significant slowdown in outflows compared with the first half of the year.
The firm started 2022 with funds under management and administration (FUMA) of £68.2bn which has dropped substantially to £57.9bn by the end of September. However, the lion’s share of the decline was recorded in the six months to the end of June which saw the firm lose £9.7bn.
Following the release of its third quarter financial update, Rathbones’ share price experienced a drop but recovered to end to the day slightly above where it started around £18.04. Over the course of 2022, however, its share price is down 9.3% having started the year at £19.24.
Financial planning firm Saunderson House, which was acquired last year, proved a somewhat reassuring presence amid the market tumult.
By division, Rathbones’ FUMA was broken down as follows:
| 31 Dec 2022 | 30 June 2022 | 30 Sept 2022 | |
| Investment Management | £50.3bn | £43.8bn | £43.1bn |
| Rathbone Funds | £13bn | £10.9bn | £10.6bn |
| Saunderson House | £4.9bn | £4.2bn | £4.2bn |
Source: Rathbones Third Quarter Trading Update
The group reported discretionary and managed net inflows of £400m in Q3, while its multi-asset fund range posted net inflows of £100m.
Paul Stockton (pictured), Rathbones group chief executive, said: “Despite challenging investment markets Rathbones has delivered a resilient quarter, with annualised discretionary and managed net organic growth of 3.3% and overall group investment performance that compares well against industry benchmarks.
“Market movements in investment values to 30 September 2022 adversely impacted total FUMA however, which fell 1.7% in the quarter to £57.9bn against the MSCI Pimfa Private Investor Balanced Index, which fell 3.5% over the same period.
“We continue to place a high priority on engaging meaningfully with our clients, both face-to-face and digitally, and are on track to deliver the first phase of our planned InvestCloud and Charles River implementations by the end of 2022. Rathbones is well-positioned to take advantage of the future growth opportunities that can arise both during and after periods of investment market volatility.”
See also: Rathbones’ Jackson: UK economy is more resilient than in 2008/09
