British investment manager Rathbones has revealed a fall in total funds under management and administration as the Covid-19 crisis continues to upend markets. However, the firm said that Q2 “started well”.
The firm’s FUM at the end of March 2020 reached £42.6bn, down 15% from £50.4bn in 2019-end.
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In its investment management unit, FUM decreased to £35.9bn from £43bn over the period while FUM at its unit trusts business slipped to £6.8bn from £7.4bn.
Barclays Wealth Personal Injury and Court of Protection operations, snapped up by Rathbones last month, contributed £400m to the FUM.
However, total net inflows increased to £700m from £200m on a year-on-year basis.
The Ethical Bond Fund, Strategic Growth Fund, Global Opportunities Fund and the High Quality Bond reported strong inflows.
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By GlobalDataThe FUM at Rathbones increased to £46.5bn as of 30 April 2020, up 9% from 5 April 2020.
The firm’s total underlying net operating income was £84.6m in Q1 2020, compared to £85.3m in the previous year.
Income in Investment Management was £74.9m in Q1 2020, a fall of 2% from £76.6m a year ago.
Income in Unit Trusts rose 11% year-on-year to £9.7m.
Rathbones CEO Paul Stockton said: “The second quarter has started well with total net organic inflows during April 2020 of £0.4bn.
“There remains a great deal of uncertainty around the duration and severity of the pandemic, and we expect that global market conditions will remain volatile and interest rates low. Our balance sheet remains strong, and we are well positioned to continue with our strategic growth agenda, mindful of the necessity to balance the needs of the business with market conditions and the health and well-being of our employees.”
Earlier this year, Rathbones announced job cuts in Glasgow and also said that it was dumping a software project that was being conducted to improve internal workflow.
