Rathbones today (16 January) posted record gross inflows and set out its 2025 priorities which include completing the migration of IW&I clients while adding marketing and distribution capability to support organic growth opportunities, both directly and in tandem with third-party IFAs.
In its fourth quarter update for the year ended 31 December 2024 it posted funds under management and administration (FUMA) totalling £109.2bn at 31 December 2024 (30 September 2024: £108.8bn, 31 December 2023: £105.3bn).
There was £93.4bn in the Wealth Management segment (£99.3bn prior to the elimination of Wealth Management FUMA invested in the Asset Management segment of £5.9bn) and £15.8bn in the Asset Management segment.
The group posted record gross inflows of £3.2bn in Q4 (Q3 2024: £2.8bn) supported by particularly strong discretionary inflows, offset by outflows of £3.4bn (Q3 2024: £3.4bn) which were partly elevated by a short-term increase in withdrawals of funds by existing clients around the UK Autumn Budget.
Total net flows in Rathbones Investment Management discretionary & managed propositions were stronger at £0.4bn (Q3 2024: £0.1bn) reflecting extensive client engagement in a turbulent quarter. Net flows represent an annualised growth rate of 2.9% for the quarter and 2.0% for the year ended 31 Dec 2024 (2023: 1.5%).
Outflows relating to previous Investec Wealth & Investment (IW&I) investment manager departures reduced materially in Q4 to their lowest level for the year. Investment manager turnover since the announcement of the combination remains low.
Gross inflows however continued to be impacted by investment teams committing time to complete the final stages of the client consent process.
Net outflows in IW&I were £0.4bn in the final quarter (Q3 2024: £0.3bn).
Flows in single strategy funds continue to reflect the challenging market environment for active asset managers.
However, net outflows reduced to £0.1bn in the final quarter (Q3 2024: outflows of £0.2bn).
Execution only net outflows equated to £0.1 billion in the quarter, owing largely to the closure of a large, low margin account.
The statement said on the outlook: "The integration of IW&I continues to proceed well, and we have made substantial progress in the integration process, in line with our expectations. The client consent process is well-progressed with very encouraging responses, and we continue to anticipate completing the client migration onto a single operating platform during the first half of 2025.
"We remain confident in the delivery of our synergy targets, including our 2025 target of at least 70% of total synergies being achieved this year on a cumulative run-rate basis.
"Our combined business offers the strength and resilience to manage through challenging market conditions, providing a personalised service that ensures clients benefit from disciplined, long-term investment strategies and advice tailored to their specific financial goals."
