Rathbones has experienced a challenging quarter, with assets declining by 0.1 per cent due to investors withdrawing £561m from the wealth manager.
The company's shares fell more than three per cent at market opening this morning in response to its quarterly results announcement, as reported by .
A range of factors contributed to the withdrawals from the business, as the number of investors pulling funds from Rathbones increased, despite deposits remaining steady.
The most significant factor was outflows linked to Rathbones' merger with Investec Wealth & Investment, which led to investors withdrawing £251m over the quarter.
Investec analysts Rahim Karim and Jens Ehrenberg attributed this to "historic investment manager departures and lower levels of inflows given the ongoing transition."
RBC analyst Ben Bathurst added that the client consent process had understandably impacted IW&I's gross inflows.
Paul Stockton, group CEO of Rathbones, commented on the progress of the integration of Investec Wealth & Investment (IW&I), stating: "The integration of Investec Wealth & Investment (IW&I) has progressed at pace throughout the summer, and we remain focused on actions that support the delivery of the financial goals we set ourselves at the outset,".
He also noted that over 80 per cent of clients have been asked for their consent to move their accounts to Rathbones Investment Management from IW&I and the response rates have been very positive.
In addition, £147m of assets were withdrawn by Saunderson House clients who chose not to transfer assets to Rathbones following the transaction.
On the whole, analysts took a somewhat negative view of the results, with the exception of Peel Hunt, which expressed continued optimism about the positive inflows into the core business, despite challenges faced by the new acquisitions in adapting.
"The potential for taxation changes in the forthcoming Autumn budget has created a heightened opportunity for us to engage positively with our clients and Rathbones remains well positioned to support clients to make the decisions needed to achieve their financial goals," Stockton added.
Rathbones was founded in Liverpool and has 15 offices throughout the º£½ÇÊÓƵ and Jersey.
