Rathbones flows fall flat as Investec W&I merger completes
Paul Stockton, group chief executive of Rathbones
In a trading update published today (19 October), the group said investment performance across the quarter in the firm's discretionary bespoke service fell flat, declining 0.8% compared to an MSCI PIMFA balanced index growth of 0.6%.
«Year-to-date group performance remains positive, benefitting in particular from the strong performance in our global opportunities and ethical bond funds,» the firm added.
The asset manager attributed the flat flows to a «continued trend in elevated outflows that reflect current conditions», noting that gross flows remained strong at £1.2bn throughout the quarter.
Rathbones and Investec W&I complete merger to create £100bn wealth manager
The results come following the completed merger of Investec Wealth and Investment UK last month, although Investec W&I was not included in figures other than total funds under management, due to the merger being completed just days before the end of the quarter.
Total funds under management and administration for the group, including Investec W&I, reached £100.7bn, compared to £60.5bn at the end of last quarter.
However, £40.8bn of this was Investec W&I, meaning the combined investment management business (£45.4bn), Rathbones funds business (£12.5bn) and Saunderson House (£2bn) totalled £59.9bn.
Assets under management and administration at Saunderson House has been steadily declining in the last year. In the second quarter of 2023, the business held £2.9bn in assets, down from £4.1bn at the end of 2022.
This was due to the ongoing client migration from Saunderson to Rathbones, which the firm said was «progressing well», and is expected to be completed by the end of Q1 2024.
Despite the poor flows, the
Read more on investmentweek.co.uk
