Rathbones Group (LON: RAT) said its Wealth Management arm attracted net inflows for a second consecutive quarter.
The UK wealth and investment manager, a FTSE 250 company serving private clients, charities and trustees, reported funds under management and administration (FUMA) up 7.2% year on year.
The shares stood at 1,616p at 09:11 London time, up 1.1% from yesterday’s 1,598p close. They opened at 1,630p, which is also the day’s high, and have traded as low as 1,580p. The update was released at 7am, before the open.
Wealth Management took in £24m of net inflows (money in minus money out) in the third quarter, against £0.3bn of outflows a year earlier. Nine-month net flows were £11m, compared with outflows of £0.8bn in the same period of 2025. Rathbones said this came despite a voluntary pause on inflows from clients needing Enhanced Due Diligence (EDD), extra checks on higher-risk clients, and a cautious backdrop ahead of the UK Autumn Budget.
Asset Management had net outflows of £425m, which Rathbones attributed to continued pressure on active equity investment in the UK retail market. That left group net outflows at £401m. Group FUMA reached £121.1bn, from £113.0bn a year earlier, and nine-month operating income rose 6.7% to £731.1m from £685.5m.
Group Chief Executive Jonathan Sorrell said the regulatory programme covering those EDD checks was on schedule:
Our regulatory programme is on track. We expect to start progressively lifting restrictions relating to existing Enhanced Due Diligence clients in Q4.
Jonathan Sorrell, Group Chief Executive, Rathbones
The cost estimate for the programme to mid-2028 is unchanged at about £60m, net of expected insurance recoveries.
Offsets remain. Vision, the Rathbones subsidiary that runs a network of adviser firms, received a section 166 notice from the Financial Conduct Authority, the UK regulator, requiring a review. It costs about £2.5m and cuts Vision’s run-rate pre-tax profit by about £4.0m from 2027. Rathbones still expects to meet its 28.7% underlying operating margin target in Q4, subject to the conditions it set out on the 27th of February.
The fourth-quarter trading update is due on the 14th of January. Guidance on lifting the restriction on new EDD clients is expected in February with the preliminary results.
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