Rathbones inflows slow in 'challenging' first half of 2023
Paul Stockton (pictured) is the CEO of Rathbones Group
In its interim results for the first half of 2023, released today (26 July), the group reported that its funds under management and administration had grown 2.7% to £60.5bn, up from £58.8bn in the first half of 2022.
Rathbones said outflows were «elevated» due to net losses in its charities business and increases in lower value outflows, but gross organic inflows grew at an annualised rate of 11.4% of opening FUMA.
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Total discretionary and managed net inflows slowed to £200m, down from £600m in the same period last year, representing an annualised growth rate of 0.7%, down from 2.3% in 2022.
Its multi-asset range also saw £98m net inflows, compared to around £400m in the first six months of 2022. Single-strategy funds suffered £300m outflows, up from £200m last year, while the group's non-discretionary service shed £8m.
«After a more positive last half of 2022, the first half of 2023 was a challenging period for investors as markets digested material changes in inflation expectations and interest rates,» said Paul Stockton, group CEO of Rathbones.
Underlying net operating income rose 2.6% year-on-year to £238m during the period, mainly due to net interest income of £23m, up from £6.1m in the first half of last year.
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Fee income and commission in the group's investment management business fell to £162.5m, a decrease of 2.3% during the same period last year, while fee income in its fund business declined by 3.1% to £31.1m.
Underlying profit before tax totalled £50.7m in the first six months of 2023, up from £50m in the first half of 2022, and
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