Rathbones Group (RAT) Trading Update summary

Funds under management and administration

• FUMA reached £109.2bn at 31 Dec 2024, up from £108.8bn at 30 Sep 2024 and £105.3bn at 31 Dec 2023.

• Wealth Management segment held £93.4bn (after eliminating £5.9bn invested in Asset Management), Asset Management segment held £15.8bn.

• Record Q4 gross inflows of £3.2bn, offset by outflows of £3.4bn, partly due to increased client withdrawals around the UK Autumn Budget.

• Net flows in discretionary & managed propositions were £0.4bn in Q4, annualised growth rate of 2.9% for the quarter and 2.0% for the year.

• Outflows from previous IW&I manager departures reduced to their lowest level in 2024; investment manager turnover remains low.

Segment and channel performance

• Rathbones discretionary & managed FUMA grew to £55.99bn, with Q4 net flows of £395m and annualised net growth of 2.9%.

• IW&I segment saw Q4 net outflows of £409m, annualised net growth of -3.8%.

• Execution only service experienced Q4 net outflows of £148m, annualised net growth of -20.2%.

• Financial adviser linked channel posted Q4 net flows of £167m, annualised net growth of 4.0%.

• Single-strategy funds and execution-only channels continued to face challenging market conditions, with reduced but still negative net flows.

Integration and outlook

• IW&I integration progressing well; substantial progress in client consent process and migration to a single platform expected in H1 2025.

• Confident in achieving 2025 synergy targets, aiming for at least 70% of total synergies on a cumulative run-rate basis this year.

• Priorities for 2025 include completing IW&I client migration and enhancing marketing and distribution for organic growth.

• Combined business positioned to manage challenging markets, focusing on personalised service and long-term investment strategies.

• Preliminary annual results to be published on 26 Feb 2025, with a presentation for analysts and investors on the same day.