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Rathbones Group PLC reported on Wednesday that its fund under management had narrowly increased, but that it had swung to a significant net outflow. Rathbones, a London-based investment and wealth management firm, said its funds under management on June 30 were £60.53 billion, up 2.7% from £58.95 billion at the same point the year before. Pretax profit in its half year ended June 30 fell 20% to £26.0 million from £32.6 million. This was caused by the £14.9 million acquisition-related costs relating to the combination of Investec Wealth & Investment Management in April. ‘The first half of 2023 was a challenging period for investors as markets digested material changes in inflation expectations and interest rates,’ said Chief Executive Paul Stockton. The company swung to an outflow of cash of £101.6 million, from a net cash inflow of £295.6 million the prior year. Rathbones said outflows were ‘elevated’ in its charities business, including one large client outflow. The company declared an interim dividend of 29.0 pence per share, up 3.6% from 28.0p year-on-year. Rathbones said that despite subdued short term market conditions, its core discretionary fund management business, and its positive performance in asset management meant it had a ‘solid platform’. ‘We look forward to achieving the objectives we set out following completion of the transaction with Investec W&I, which are expected to improve medium term underlying operating profit margins to at least 30%,’ said Chair Clive Bannister and CEO Stockton. Shares in Rathbones were down 1.7% at 1,894.00 pence in London on Wednesday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved
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