Rathbones Group reported a fall in total funds under management and administration over its first quarter on Thursday, to £64.7bn, compared to £68.2bn at the end of December.
The FTSE 250 company said that consisted of £47.9bn in investment management, down from £50.3bn, while Rathbones Funds saw a fall to £12.1bn from £13bn and Saunderson House was down to £4.7bn from £4.9bn.
Discretionary and managed net inflows totalled £0.3bn for the three months ended 31 March, down from £0.4bn year-on-year, representing an annualised growth rate of 2.5%, compared to 4.0% in the first quarter of 2021 and 1.9% in the fourth quarter.
Net inflows into multi-asset funds were described as “strong” by the board at £0.1bn, which was stable year-on-year and represented annual net growth of 20.4%.
Rathbones said its underlying net operating income totalled £120.5m for the three months, which was an increase of 12.3% from the £107.3m it recorded a year ago.
Investment management fees increased 4.5% to £72.2m, and commissions slipped to £14.9m from £17.9m, in line with trading volumes.
As expected, the company’s net interest income grew 40% to £2.1m, reflecting the increase in Bank of England base rates over the quarter.
Fees from advisory services and other income increased to £14.7m from £5.1m year-on-year, reflecting the acquisition of Saunderson House, while income in Rathbone Funds rose to £16.6m from £13.7m.
Rathbones said the final dividend for 2021 of 54p per share was set to be paid on 10 May.
“Net operating income has been strong in the first quarter, increasing 12.3% year-on-year and 4.0% on the previous three months,” said group chief executive Paul Stockton.
“Discretionary and managed net inflows were resilient in a market impacted by inflation fears and a general repositioning towards value.”
Stockton said Rathbones was focused on delivering its strategic plans, with digital investment and the integration of Saunderson House both progressing well.
“There remain significant opportunities in our sector and with a strong balance sheet and clear direction, Rathbones is well-placed to take advantage of future opportunities.”
At 0927 BST, shares in Rathbones Group were flat at 2,090p.