The tough market conditions of the first quarter saw funds under management and administration (FUMA) at Rathbones drop 5% to £64.7bn.
The funds business recorded an FUMA drop of 7% to £12.1bn, down from £13bn at the start of the year, while the investment management arm was down 4.8% from £50.3bn to £47.9bn.
Financial planning firm Saunderson House, which Rathbones acquired for £150 in June 2021, saw a £200m decline in FUMA to £4.7bn.
The group’s discretionary service attracted net inflows of £223m, with £101m flowing into its multi-asset funds. Net outflows of £65m were recorded into its single-strategy funds, with £68m also exiting Rathbones’ execution-only and banking division.
With net outflows of £26m reported by Saunderson House, Rathbones ended the quarter with net inflows across the board of £151m, which was easily subsumed by the £3.6bn in negative investment returns.
Paul Stockton (pictured), group chief executive of Rathbones, said: “Net operating income has been strong in the first quarter, increasing 12.3% year-on-year and 4% on the previous three months. Discretionary and managed net inflows were resilient in a market impacted by inflation fears and a general repositioning towards value.”
He said the business “remains focused on delivering the strategic plans we set out at our full-year results, with digital investment and integration of Saunderson House both progressing well”.
“There remain significant opportunities in our sector and with a strong balance sheet and clear direction, Rathbones is well placed to take advantage of future opportunities.”