Rathbones group plans to invest £40mn in its digital strategy over the next year, after its profits doubled.
The company reported a pre-tax profit of £95mn for the year to December 31, boosted by a 25 per cent rise in funds under management to £68.2bn.
The figures were enhanced by Rathbones’ acquisition of Saunderson House last year, which brought £4.9bn of funds under management and 51 financial planners to the group.
In a statement to the stock exchange today (February 24), the group said it had partnered with digital transformation firm Investcloud, to aid the delivery of a “holistic digital experience”.
Paul Stockton, group chief executive, said £40mn will be invested in this digital strategy over the next two years, and will be used to “leverage technology and people”.
The group launched an app and portal last year, MyRathbones, currently used by 43 per cent of clients, which the company is looking to grow this year.
Stockton said: “Our ambition is that clients and advisers will see a seamless, personalised and interactive experience that significantly reduces unnecessary documentation and data processes that materially improves efficiency and client centricity across the business.
“There is little doubt that the pandemic has greatly emphasised the importance of this direction of travel as well as being a significant facilitator of change as to how we work and interact with each other and our clients.”
Rathbones has also entered a partnership agreement with Charles River, a portfolio management solution provider.
Net inflows of discretionary and managed funds under management and administration rose 30 per cent to £1bn in the year, with direct net flows into its multi-asset fund range totalling £500mn, up from £200mn the year before.
In total, Rathbones' funds generated net inflows of £2.1bn, a 21 per cent rise from the previous year.
Stockton said: "We set out our focused strategy over two years ago and it has driven some considerable and positive changes within the business over that period.
"It is clear from the results we are publishing today that Rathbones is building strong organic growth momentum, complemented by value-added acquisitions.”
sally.hickey@ft.com
