Liverpool wealth manager Rathbones is reporting a rise in funds under management to £60.9bn – just weeks after announcing a £839m Investec merger. Tony McDonough reports

Wealth manager Rathbones – one of Liverpool’s oldest businesses – is reporting a rise in funds under management to £60.9bn in the first quarter of 2023.

This is 1.1% higher than the £60.2bn reported for the three months to December 31. In a statement to the stock exchange on Thursday, Rathbones said net inflows into its discretionary and managed business were £303m.

It said this represents a 2.6% annual growth rate. Net operating income increased 6.4% compared with the previous quarter to £117.8m.

In early April Rathbones, which dates back to the early 18th century and is based in the Port of Liverpool Building, announced it was acquiring Investec Wealth & Investment for £839m. This will create a business with £100bn of funds under management.

Investec W&I is the wealth management of the Investec Group, which is listed on both the London and Johannesburg stock exchanges. Investec has a Liverpool team based at The Plaza in St Paul’s Square.

Subject to regulatory approval, the deal includes Investec’s wealth and investment businesses in the UK and Channel Islands but excludes Investec Bank based in Switzerland and the international wealth arm.

Of the £60.9bn of funds under management, £45bn is in the investment management business, £11.4bn in the Rathbone Funds business and £3.7bn in Saunderson House.

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Rathbones chief executive Paul Stockton said: “Rathbones remains on track to meet the operating margin targets provided in the 2022 preliminary results, supported by the successful delivery of Saunderson House synergies and the launch of an enhanced digital capability.

“Over the coming months Rathbones expects to complete the combination with Investec that was announced on April 4, subject to regulatory approvals. The prospectus and circular in relation to the combination will be published later this quarter. 

“This transaction represents a significant opportunity in our sector to become the UK’s leading discretionary wealth manager.”