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(Sharecast News) - Wealth manager Rathbones said on Thursday that it had made a "positive start" to FY24, partly due to its merger with Investec Wealth & Investment back in 2023.
Rathbones said total funds under management and administration were of 107.6bn as of 31 March, up from 105.3bn at the end of December, including 49.2bn in Rathbones Investment Management and 42.4bn in IW&I, up from 48.0m and 42.2m, respectively. Rathbones Asset Management FUMA rose from 13.8m to 15.0m.
However, the London-listed group noted that total net flows in wealth management were negative in the quarter as positive inflows in Rathbones were offset by outflows in IW&I.
Underlying net operating income totalled 223.6m for the quarter, representing growth of 13.6% year-on-year, excluding the contribution of 89.8m from IW&I during the period.
Rathbones also highlighted that it continues to expect full-year underlying operating margins to be "mid-20%".
Chief executive Paul Stockton said: "Rathbones has made a positive start to 2024, with operating income 13.6% higher than the first quarter of 2023 on a like-for-like basis, and 89.8% higher incorporating Investec Wealth & Investment. Total funds under management and administration increased by 2.1% in the quarter to 107.6bn. Despite outflows remaining elevated overall, Rathbones Investment Management continued to deliver strong gross inflows in discretionary & managed services, achieving an annualised net organic growth rate of 2.8%. The integration of IW&I is progressing well with run-rate synergies now 10.6m, up from the 8.0m reported at 31 December 2023.
"While economic uncertainty and headwinds remain in the UK and abroad, Rathbones is well-equipped to navigate challenging market conditions. We remain confident in our integration and synergy targets and are well-positioned to take advantage of the future benefits of the group's scale."
As of 1025 BST, Rathbones shares were up 0.23% at 1,770.02p.
Reporting by Iain Gilbert at Sharecast.com
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