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Rathbones Group PLC on Tuesday said operating income increased in the third quarter as funds under management and administration rose. In a trading update, the London-based investment and wealth manager said total operating income increased 7.2% to £236.4 million in the three months to the end of September from £220.6 million a year before. Funds under management and administration increased by 3.7% during the quarter to reach £113.0 billion, up from £109.0 billion at the end of June and £108.8 billion a year ago. Rathbones said £103.2 billion is in the Wealth Management Segment, while £16.3 billion is in the Asset Management segment. Total net outflows in the quarter were £600 million, unchanged from a year before. Net outflows in the Wealth Management segment were £297.0 million, down 27% from £408.0 million a year ago. Net outflows in the Asset Management segment multiplied to £229.0 million from £36.0 million. The figures include £66.0 million of Wealth Management inflows that were invested in the Asset Management segment. Rathbones said it has achieved its synergy target of £60.0 million on an annualised run-rate basis during the third quarter. During the first half of 2025, Rathbones completed the client and asset migration of Investec Wealth & Investment. In September 2023, it concluded the all-share combination with Investec W&I, which had been a UK division of Investec PLC and Ltd. ‘We are focused on serving our clients exceptionally well and driving organic growth. I have spent my first months with our people and clients. We have all the ingredients to provide the best offering in the market: great people, trusted client relationships, and the scale to invest in our future,’ said Chief Executive Officer Jonathan Sorrell. Sorrell joined as CEO in August, replacing Paul Stockton, who was in post for 16 years. Sorrell joined from Capstone Investment Advisors, a derivatives investment management firm where he was president since the start of 2020. Sorrell previously was chief financial officer, and later president, of active investment manager Man Group PLC. He added: ‘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.’ Shares in Rathbones were down 3.9% at 1,812.00 pence in London on Wednesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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