Rathbones maintains positive flows in H1 but profits decline

Rathbones is the latest manager to see falling profits in the first half of the 2022 financial year, though it managed to maintain inflows amid a volatile market environment.

Profits at the 280-year-old asset manager dropped to £50m, down from £62.9m in June last year, as market volatility hit investor sentiment.

Total funds under management across the group closed the period at £58.9bn, down from £59.2bn in June 2021, with assets in its funds business falling from £11.4bn to £10.9bn. 

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Funds under management in Rathbones' investment management business also declined, from £47.8bn to £43.8bn.

The results come as a record number of wealth and asset managers report a decline in profits and assets under management, including Swiss fund group GAM, Brewin Dolphin and AJ Bell.

Despite a tumultuous market backdrop, flows for the first half of the year were positive, finishing at £600m, but represent a decline compared to the £1bn of inflows in the first half of 2021, with net inflows from its discretionary service dropping from £700m in the first half of 2021, to £400m in the six months to June 2022.

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Flows into its multi-asset fund range declined from £300m to £200m, but income at its fund business increased from £28.7m in 2021, to £31.8m as of June 2022.

It increased its interim dividend 3.7% to 28p, compared to 27p during the same period last year. It will be paid on 4 October 2022, the manager confirmed. 

Paul Stockton, group chief executive at Rathbones, said: "The first half of 2022 has been a turbulent one for investors but despite this volatility, net inflows remained positive in the period.

"Rathbones remains focused on delivering the strategic plans we set out at our full-year results. Investment in our digital and data capabilities remains critical to our future success which, supported by high client retention and a robust balance sheet, places Rathbones in a strong position to navigate short-term market fluctuations and take advantage of future growth opportunities in the sector."