Rathbones Group Plc
fourth QUARTER UPDATE
Funds under management and administration (FUMA) update for the year ended 31 December 2024 and notice of results
- Funds under management and administration (FUMA) totalled £109.2 billion at 31 December 2024 (30 September 2024: £108.8 billion, 31 December 2023: £105.3 billion).
- £93.4 billion in the Wealth Management segment (£99.3 billion prior to the elimination of Wealth Management FUMA invested in the Asset Management segment of £5.9 billion).
- £15.8 billion in the Asset Management segment.
- The group posted record gross inflows of £3.2 billion in Q4 (Q3 2024: £2.8 billion) supported by particularly strong discretionary inflows, offset by outflows of £3.4 billion (Q3 2024: £3.4 billion) which were partly elevated by a short-term increase in withdrawals of funds by existing clients around the UK Autumn Budget.
- Total net flows in Rathbones Investment Management discretionary & managed propositions were stronger at £0.4 billion (Q3 2024: £0.1 billion) reflecting extensive client engagement in a turbulent quarter. Net flows represent an annualised growth rate of 2.9% for the quarter and 2.0% for the year ended 31 Dec 2024 (2023: 1.5%).
- Outflows relating to previous Investec Wealth & Investment (IW&I) investment manager departures reduced materially in Q4 to their lowest level for the year. Investment manager turnover since the announcement of the combination remains low. 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 £0.4 billion in the final quarter (Q3 2024: £0.3 billion).
- Flows in single strategy funds continue to reflect the challenging market environment for active asset managers. However, net outflows reduced to £0.1 billion in the final quarter (Q3 2024: outflows of £0.2 billion).
- Execution only net outflows equated to £0.1 billion in the quarter, owing largely to the closure of a large, low margin account.
Outlook
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. We remain confident in the delivery of our synergy targets, including our 2025 target of at least 70% of total synergies being achieved this year on a cumulative run-rate basis.
Our combined business offers the strength and resilience to manage through challenging market conditions, providing a personalised service that ensures clients benefit from disciplined, long-term investment strategies and advice tailored to their specific financial goals.
Our priorities for 2025 include completing the migration of IW&I clients whilst adding marketing and distribution capability to support organic growth opportunities, both directly and in tandem with third-party IFAs.
Notice of results
Our preliminary statement of annual results for the year ended 31 December 2024 will be published on Wednesday, 26 February 2025. A presentation to analysts and investors will be held at 10am on the same day at 30 Gresham Street, London.
Funds under management and administration
(I) Segment fuma
| 12 months ended 31 December 2024 | Wealth Management | Asset Management (£m) | Intra-group holdings (£m) | Group FUMA |
| Opening FUMA | 96,118 | 13,770 | (4,548) | 105,340 |
| Gross Inflows | 9,656 | 4,387 | (1,991) | 12,052 |
| Gross Outflows | (10,729) | (3,781) | 1,040 | (13,470) |
| Net Flows | (1,073) | 606 | (951) | (1,418) |
| Transfers | (84) | 84 | - | - |
| Market & Investment Performance | 4,348 | 1,291 | (397) | 5,242 |
| Closing FUMA | 99,309 | 15,751 | (5,896) | 109,164 |
(Ii) Breakdown of FUMA and flows by service level
| 12 months ended 31 December 2024 | Opening FUMA | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows | Transfers1 | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA | Ann Net Growth2 |
| Rathbones Investment Management | 48,759 | 5,239 | (4,405) | 834 | 16 | 1,275 | 2,016 | 52,900 | 1.7 |
| Bespoke portfolios | 45,004 | 4,667 | (4,023) | 644 | (422) | 828 | 1,747 | 47,801 | 1.4 |
| Managed via in-house funds | 3,755 | 572 | (382) | 190 | 438 | 447 | 269 | 5,099 | 5.1 |
| Multi-asset funds3 | 2,545 | 1,042 | (846) | 196 | 84 | - | 268 | 3,093 | 7.7 |
| Rathbones discretionary & managed | 51,304 | 6,281 | (5,251) | 1,030 | 100 | 1,275 | 2,284 | 55,993 | 2.0 |
| Non-discretionary service | 752 | 20 | (41) | (21) | (68) | - | 3 | 666 | (2.8) |
| IW&I | 42,267 | 3,964 | (5,026) | (1,062) | (256) | - | 2,024 | 42,973 | (2.5) |
| Saunderson House | 1,590 | 68 | (494) | (426) | - | (1,278) | 114 | - | (26.8) |
| Single-strategy funds | 6,677 | 1,354 | (1,895) | (541) | - | - | 626 | 6,762 | (8.1) |
| Execution only | 2,750 | 365 | (763) | (398) | 224 | 3 | 191 | 2,770 | (14.5) |
| Total group | 105,340 | 12,052 | (13,470) | (1,418) | - | - | 5,242 | 109,164 | (1.3) |
| Q4 ended 31 December 2024 | Opening FUMA | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows | Transfers1 | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA | Ann Net Growth2 |
| Rathbones Investment Management | 52,355 | 1,568 | (1,187) | 381 | (20) | - | 184 | 52,900 | 2.9 |
| Bespoke portfolios | 47,441 | 1,396 | (1,077) | 319 | (113) | - | 154 | 47,801 | 2.7 |
| Managed via in-house funds | 4,914 | 172 | (110) | 62 | 93 | - | 30 | 5,099 | 5.0 |
| Multi-asset funds3 | 3,058 | 237 | (223) | 14 | - | - | 21 | 3,093 | 1.8 |
| Rathbones discretionary & managed | 55,413 | 1,805 | (1,410) | 395 | (20) | - | 205 | 55,993 | 2.9 |
| Non-discretionary service | 683 | 2 | (6) | (4) | (19) | - | 6 | 666 | (2.3) |
| IW&I | 43,043 | 913 | (1,322) | (409) | (6) | - | 345 | 42,973 | (3.8) |
| Saunderson House | - | - | - | - | - | - | - | - | - |
| Single-strategy funds | 6,734 | 323 | (421) | (98) | - | - | 126 | 6,762 | (5.8) |
| Execution only | 2,932 | 119 | (267) | (148) | 45 | - | (59) | 2,770 | (20.2) |
| Total group | 108,805 | 3,162 | (3,426) | (264) | - | - | 623 | 109,164 | (1.0) |
(iiI) Breakdown of WEALTH Management FUMA and flows by channel
| 12 months ended 31 December 2024 | Opening FUMA |
Gross Inflows (£m) |
Gross Outflows (£m) | Net Flows | Transfers1 | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA | Ann Net Growth2 |
| Total direct | 34,411 | 3,336 | (3,169) | 167 | (185) | 1 | 1,539 | 35,933 | 0.5 |
| Total financial adviser linked | 14,348 | 1,903 | (1,236) | 667 | 201 | 1,274 | 477 | 16,967 | 4.6 |
| Total discretionary service | 48,759 | 5,239 | (4,405) | 834 | 16 | 1,275 | 2,016 | 52,900 | 1.7 |
| Execution only | 2,750 | 365 | (763) | (398) | 224 | 3 | 191 | 2,770 | (14.5) |
| Non-discretionary service | 752 | 20 | (41) | (21) | (68) | - | 3 | 666 | (2.8) |
| Total wealth management | 52,261 | 5,624 | (5,209) | 415 | 172 | 1,278 | 2,210 | 56,336 | 0.8 |
| IW&I | 42,267 | 3,964 | (5,026) | (1,062) | (256) | - | 2,024 | 42,973 | (2.5) |
| Total wealth management for enlarged group | 94,528 | 9,588 | (10,235) | (647) | (84) | 1,278 | 4,234 | 99,309 | (0.7) |
| Q4 ended 31 December 2024 | Opening FUMA |
Gross Inflows (£m) |
Gross Outflows (£m) | Net Flows | Transfers1 | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA | Ann Net Growth2 |
| Total direct | 35,535 | 1,051 | (837) | 214 | (63) | - | 247 | 35,933 | 2.4 |
| Total financial adviser linked | 16,820 | 517 | (350) | 167 | 43 | - | (63) | 16,967 | 4.0 |
| Total discretionary service | 52,355 | 1,568 | (1,187) | 381 | (20) | - | 184 | 52,900 | 2.9 |
| Execution only | 2,932 | 119 | (267) | (148) | 45 | - | (59) | 2,770 | (20.2) |
| Non-discretionary service | 683 | 2 | (6) | (4) | (19) | - | 6 | 666 | (2.3) |
| Total wealth management | 55,970 | 1,689 | (1,460) | 229 | 6 | - | 131 | 56,336 | 1.6 |
| IW&I | 43,043 | 913 | (1,322) | (409) | (6) | - | 345 | 42,973 | (3.8) |
| Total wealth management for enlarged group | 99,013 | 2,602 | (2,782) | (180) | - | - | 476 | 99,309 | (0.7) |
(iV) Total Group FUMA
| 12 months ended 31 December 2024 | Opening FUMA | Gross Inflows (£m) | Gross Outflows (£m) | Net Flows | Transfers1 | SHL Migrated Assets (£m) | Market & Investment Performance (£m) | Closing FUMA | Ann Net Growth2 |
| Rathbones Investment Management | 52,261 | 5,624 | (5,209) | 415 | 172 | 1,278 | 2,210 | 56,336 | 0.8 |
| Rathbones Asset Management | 13,770 | 4,387 | (3,781) | 606 | 84 | - | 1,291 | 15,751 | 4.4 |
| IW&I | 42,267 | 3,964 | (5,026) | (1,062) | (256) | - | 2,024 | 42,973 | (2.5) |
| Saunderson House | 1,590 | 68 | (494) | (426) | - | (1,278) | 114 | - | (26.8) |
| Total | 109,888 | 14,043 | (14,510) | (467) | - | - | 5,639 | 115,060 | (0.4) |
| Group eliminations4 | (4,548) | (1,991) | 1,040 | (951) | - | - | (397) | (5,896) | 20.9 |
| Total | 105,340 | 12,052 | (13,470) | (1,418) | - | - | 5,242 | 109,164 | (1.3) |
| | | | | | | | | | |
1. Transfers represent client FUMA which has transferred from one service to another and other intra-group movements. These are excluded from net inflows.
2. Annualised net growth calculated as net flows/opening FUMA.
3. Net inflows into multi-asset funds include direct flows and flows into managed solutions via in-house funds.
4. Group eliminations represent RAM funds that are held within portfolios managed by RIM (£5.7 billion) and IW&I (£0.2 billion) teams. Consequently, after excluding the RAM funds, the FUMA of each entity is £50.6 billion in RIM and £42.7 billion within IW&I.
16 January 2025
For further information contact:
Rathbones Group Plc
Paul Stockton, Group Chief Executive Officer
Iain Hooley, Group Chief Financial Officer
Shelly Patel, Head of Investor Relations
Tel: 020 7399 0071
Email: shelly.patel@rathbones.com
Camarco
Ed Gascoigne-Pees
Tel: 020 3757 4980
Email: ed.gascoigne-pees@camarco.co.uk
Rathbones Group Plc
Rathbones provides wealth and asset management services for private clients, charities, trustees and professional partners. We have been trusted for generations to manage and preserve our clients' wealth. Our tradition of investing and acting for everyone's tomorrow has been with us from the beginning and continues to lead us forward.
Rathbones headquarters is 30 Gresham Street, London, EC2V 7PG.
www.rathbones.com
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