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(Sharecast News) - Rathbones reported a rise in third-quarter funds under management and administration on Thursday as its wealth management business generated net inflows for the second consecutive quarter.
FUMA jumped 7.2% year-on-year to £121.1bn, of which £112.9bn was in the wealth management arm. Rathbones said the increase was supported by positive market and investment performance.
Wealth management attracted net inflows of £24m in Q3, versus net outflows of £0.3bn in the same quarter a year earlier, and marking the second consecutive quarter of net inflows. This is despite the voluntary pause on inflows from Enhanced Due Diligence (EDD) clients and a cautious backdrop ahead of the UK Autumn Budget, the company said.
In the asset management segment, there were net outflows of £425m during the quarter, reflecting continued pressure on active equity investment in the UK retail market, and bringing group net outflows to £401m in Q3.
Chief executive Jonathan Sorrell said: "In the third quarter, we continued to deliver progress against our strategy. We generated net inflows in wealth management for a second consecutive quarter, strong investment performance for our wealth management clients and hit operational milestones that position us for growth.
"Our ambition is to be the best wealth manager in the UK, by far, and the growth opportunity ahead of Rathbones is substantial. We are broadening how we help clients with the launch of on-demand financial planning, and have received regulatory authorisation for Rathbones Ireland, which means we can fully service existing and new clients in Ireland and in the EU. We have also launched our first brand campaign, highlighting our purpose to help more people invest well so they can live well.
"Our regulatory programme is on track. We expect to start progressively lifting restrictions relating to existing Enhanced Due Diligence clients in Q4.
"With flows improving and our strategic initiatives making good progress, we are encouraged by the momentum in our business."
At 1030 BST, the shares were up 0.3% at 1,602.73p.
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