Rathbones funds rise as its wealth management arm returns to inflows
Rathbones posted a rise in funds under management and administration as its wealth management arm returned to net inflows. Funds under management and adminsitration increased 7.2 per cent year on year to £121.1bn. Its wealth management arm achieved net inflows, increasing to £24m after reporting losses of £300m the previous year. Further growth was restricted [...]
Rathbones reported an increase in funds under management and administration, with a 7.2% year-on-year rise to £121.1 billion. Its wealth management arm returned to net inflows, reaching £24 million after posting losses of £300 million the previous year. However, growth was limited due to a pause on accepting new money from enhanced due diligence (EDD) clients and a cautious market environment ahead of the Autumn Budget.
Despite this, clients withdrew a net £401 million from the company during the period, primarily due to increased pressure on its asset management channel, where outflows totaled £425 million, out of total gross outflows of £738 million. Rathbones shares rose 1.2% to 1,618 pence, down 15% year-to-date. The firm is also facing a Section 166 notice from the FCA, which requires a "Skilled Person" review, estimated to cost £2.5 million and reduce pre-tax profit by £4 million from 2027.
Despite these challenges, Rathbones claims to be making "good progress" in addressing FCA concerns, with restrictions on EDD clients expected to lift by Q4, and the regulatory program on schedule. CEO Jonathan Sorrell reaffirmed his commitment to make Rathbones the "best wealth manager in the UK."
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