Rathbones saw outflows of £3.4bn in Q4 of 2024, which were “partly elevated” by a short-term increase in withdrawals of funds by existing clients around the UK Autumn Budget.
In a trading update released today (16 January), Rathbones added that it posted record gross inflows of £3.2bn in Q4, which was offset by its outflows.
Rathbones did see funds under management and administration (FUMA) total £109.2bn, an increase from £108.8bn Q3 and £105.3bn in 2023 Q4.
Total net flows in Rathbones Investment Management discretionary and managed propositions were stronger at £400m, compared to £100m in Q3 2024. This “reflected extensive client engagement in a turbulent quarter”, said Rathbones.
Net flows also represent an annualised growth rate of 2.9% for Q4 and 2.0% for the year ended 31 December 2024, in contrast to 1.5% in 2023.
Outflows relating to previous Investec Wealth & Investment (IW&I) investment manager departures reduced materially in Q4 to their lowest level for the year.
In April 2023, Rathbones Group and IW&I merged to create the UK’s “leading” discretionary wealth manager.
Rathbones added: “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.”
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 £400m in Q4, in contrast to £300m in Q3 2024.
Rathbones said: “Flows in single-strategy funds continue to reflect the challenging market environment for active asset managers.”
Nonetheless, net outflows reduced to £100m in the final quarter of 2024 from £200min in Q3 2024.
Rathbones outlined its priorities for 2025, 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”.
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