Rathbones funds under management grows as it integrates Investec Wealth

(Sharecast News) - Wealth manager Rathbones Group reported total funds under management and administration, including Investec Wealth & Investment (IW&I), of £105.3bn at the end of December on Wednesday. The FTSE 250 company said that reflected substantial growth from £100.7bn at the end of September and £60.2bn at the end of December 2022.

It said the total included £48bn in Rathbone Investment Management (RIM), compared to £45.1bn a year earlier, and £42.2bn in IW&I, which was non-existent in the prior year.

The total also included £1.3bn in Saunderson House, down from £4.1bn in December 2022, as funds under management continued to migrate as planned to Rathbones' investment propositions.

It also included £13.8bn in Rathbone Asset Management (RAM), previously known as Rathbone Unit Trust Management, compared to £11bn at the end of the prior year.

Total net flows in wealth management remained flat in the quarter.

Rathbones said it saw positive inflows of £0.4bn in discretionary and managed assets, although IW&I experienced net outflows of £0.3bn , primarily due to anticipated departures of investment managers that occurred before the announcement of the combination with Rathbones.

The turnover of investment managers had since been low, with the firm reporting positive engagement from colleagues at IW&I and integration work remaining on track.

Rathbones reported net inflows of £0.6bn into its multi-asset fund range, including both direct and managed solutions via in-house funds.

In contrast, RAM's single strategy funds experienced net outflows of £0.1bn, showing resilience against the backdrop of challenges in the wider asset management industry.

Market and investment performance contributed significantly to funds under management growth, adding £4.9bn in the quarter.

Looking ahead, Rathbones noted that economic uncertainties were expected to persist in 2024.

However, the company said it was focussed on client engagement and delivering towards its key strategic objectives.

Until the full integration of IW&I was complete, the existing client billing dates for each of the investment management businesses would be maintained.

Rathbone Investment Management clients would continue with the principal charging dates of 5 April, 30 June, 30 September, and 31 December, while IW&I clients would follow the charging dates of 29 February, 31 May, 31 August, and 30 November in 2024.

At 1001 GMT, shares in Rathbones Group were down 3.83% at 1,673.44p.

Reporting by Josh White for Sharecast.com.