Rathbones' assets under management fell by more than 15 per cent over the first three months of the year as the coronavirus crisis spooked investors and global markets.
In a quarterly trading update, published today (May 7), the fund house reported its AUM had dropped from £50bn at the end of December to £42.6bn by March 31 — a reduction of 15.4 per cent.
The assets in its investment management arm slid by £7bn to £36bn over the three months, while Rathbones’ unit trusts business AUM fell from £7.4bn to £6.8bn.
The first quarter of 2020 was a drastic time for investments, with the FTSE All Share dropping 25 per cent over the three months and S&P 500 both losing 14 per cent.
Rathbones reported its total AUM has since bounced back to £46.5bn (as at April 30), an increase of 9.2 per cent from April 5.
The results showed total net inflows of about £700m — up from £200m in the same quarter in 2019 — made up of £200m into the units trust arm and £500m into Rathbones’ investment management business.
Rathbones also saw its AUM boosted by £400m through the acquisition of the Personal Injury and Court of Protection business of Barclays Wealth.
The asset manager saw a total underlying net operating income of £84.6m for the quarter, only slipping slightly from the £85.3m recorded for Q1 2019.
Rathbones’ income was hit primarily by investment management fees, which were down 9.7 per cent when compared to the prior year due to the falling markets, but fees from advisory services and other income had increased by 2.1 per cent.
Paul Stockton, chief executive of Rathbones, said: “I am very proud of the way our people and infrastructure have responded to the Covid-19 crisis.
“Our business model is robust and has rapidly adjusted to ways of working remotely whilst continuing to provide clients with quality service, investment solutions and advice, at a time when they need it most.”
Mr Stockton said there remained a great deal of uncertainty around the duration and severity of the pandemic, adding he expected global market conditions would remain volatile and interest rates low.
imogen.tew@ft.com
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