Rathbones Q3 inflows all but wiped out

Investment manager Rathbones said on Thursday that third-quarter flows were largely flat as a result of a "challenging market backdrop".

Rathbones reported "strong levels of gross inflows" at £1.2bn in the quarter but these were largely offset by elevated outflows of £1.1bn.

Total funds under management and administration, including those from the recently acquired Investec Wealth and Investment, were £100.7bn as of 30 September, up from £60.5bn at the end of the previous quarter.

Underlying net operating income was £120.4m for the quarter, an increase of 6.5% year-on-year, while Rathbones' investment performance in its discretionary bespoke service lagged the MSCI PIMFA balanced index in the quarter, coming in at -0.8% compared to 0.6%.

However, Rathbones did note that its year-to-date group performance remained "positive", benefitting in particular from a "strong performance" in its global opportunities and ethical bond funds.

Chief executive Paul Stockton said: "The scale that Rathbones now has positions us strongly to navigate current conditions successfully. We are confident in delivering the synergies associated with the IW&I transaction, together with our 2023 and 2024 operating margin guidance for the enlarged Rathbones group."

As of 0935 BST, Rathbones shares were down 0.81% at 1,527.50p.

Reporting by Iain Gilbert at Sharecast.com