Rathbones shares trade lower as net outflows persist

(Sharecast News) - Investment manager Rathbones Group shares headed south in early trading on Wednesday as investors reacted to continued net outflows across both its wealth and asset management segments, offsetting growth in funds under management and administration. Rathbones said funds under management and administration had risen 3.7% during the three months ended 30 September to £113.0bn, driven by gains in both wealth management and asset management, which hit £103.2bn and £16.3bn, respectively.

However, total net outflows remained at £600m, unchanged from the same period last year, with wealth Management reporting £297m in outflows and asset management deliver £229m in outflows, reversing the prior-year's inflow.

Operating income rose 7.2% year-on-year to £236.4m, while Rathbones confirmed it had achieved its £60m synergy target on an annualised run-rate basis during Q3.

The FTSE 250-listed firm also noted that £6.5bn of wealth management FUMA was invested in its asset management segment, and that £66m of wealth inflows were allocated internally, down sharply from £189m in Q324.

Chief executive Jonathan Sorrell said: "Our teams have done tremendous work integrating the business over the past two years, and that foundation matters. Though the UK economy remains challenging, with much uncertainty ahead of the Budget, our attention is directed at returning to positive net flows. The opportunity ahead is significant and we are committed to capturing it through sustained effort and consistency of purpose."

As of 1015 BST, Rathbones shares were down 3.61% at 1,818p.

Reporting by Iain Gilbert at Sharecast.com