Rathbone Brothers sees investment management outflows offset by unit trusts

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Rathbone Brothers PLC (LON:RAT) has reported improved operating income and positive inflows in the third quarter as funds under management and administration (FUMA) remained almost flat in the first nine months of the year.

At the end of September 2020, Rathbone’s FUMA was GBP50.5bn, up by GBP0.1bn or 0.2% since the end of December 2019.

This resulted as a decline of GBP1.2bn or 2.7% at the investment management arm to GBP41.8bn was just offset by a rise to GBP8.7bn from GBP7.4bn at the unit trust management division.

There were GBP0.3bn of net inflows across the business in the third quarter, with net outflows for investment management offset by the unit trust arm.

Rathbone’s chief executive Paul Stockton said growth and strong investment performance more than offset the adverse effect of weaker financial markets during the first nine months of the year.

Net operating income of GBP87.0 million for the quarter was up 0.8% year on year.

“Whilst the medium term impacts of the pandemic are likely to weigh on investor sentiment for some time, we continue to convert more client assets to our discretionary service, invest in technology, and attract high quality investment professionals to support our future growth,” Stockton said in a statement.

“Our balance sheet remains robust, placing us in a strong position to support the ongoing safety and well-being of our colleagues and communities, identify inorganic opportunities that fit our culture, and deliver long term value to our clients and shareholders in a structurally growing UK wealth management market.”

Rathbone shares were down 1% to 1,502p in early trading on Thursday.

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