17th Oct 2024 09:54
(Alliance News) - Rathbones Group PLC on Thursday said it continued to suffer net outflows following its merger with the UK wealth management business of Investec PLC.
However, a positive market and investment performance in the third quarter kept funds under management and advisory steady.
The London-based investment and wealth management company said FuMA was GBP108.81 billion on September 30, marginally down from GBP108.91 billion on June 30. Net outflows were GBP561 million, mostly offset by a positive market and investment performance of GBP459 million.
FuMA is up 3.3% so far in 2024 from GBP105.34 billion on December 31.
In the third quarter, net inflows at Rathbones Investment Management were GBP147 million, improved from GBP135 million in the second, but Investec Wealth & Management suffered GBP251 million in net outflows, swung from net inflows of GBP178 million in the second quarter.
Rathbones is working on securing consent from the Investec clients to move to Rathbones services. "Whilst the client consent process continues to progress well, gross inflows were to an extent impacted by the time required to manage the process," the company explained. "Investment manager turnover post combination remains very low such that outflows relating to previous departures were consistent with those seen in Q2."
Chief Executive Officer Paul Stockton added: "The integration of Investec Wealth & Investment has progressed at pace throughout the summer, and we remain focused on actions that support the delivery of the financial goals we set ourselves at the outset. Over 80% of clients have been asked for their consent to move their accounts to Rathbones Investment Management from IW&I and response rates are very positive."
Rathbones will provide a fourth-quarter trading update on January 16 and its full 2024 results on February 26.
Shares were down 2.3% to 1,800.00 pence early Thursday in London.
By Tom Waite, Alliance News editor
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