The London-headquartered wealth and asset manager has been through the process of integrating Investec Wealth & Investment, part of a trend of M&A activity in the UK.

UK-listed Rathbones Group, which has been integrating the acquired Investec Wealth & Investment (IW&I) business in recent months, yesterday reported a surge in net operating income in the third quarter of 2024, rising by 86.4 per cent year-on-year, at £220.6 million ($286.98 million). 

Fees from advisory services and other income jumped by 78.7 per cent to £19 million; wealth management fees, at £144.5 million, rose by 106.5 per cent; commissions and net interest income also rose strongly on a year earlier, Rathbones said in a statement. 

Funds under management and administration totalled £108.8 billion, as at 30 September this year, up from £105.3 billion at the end of December, 2023. In the wealth management section, funds under management stood at $99 billion.

The Investec integration
As unveiled in April, Rathbones has merged with IW&I, adding to a pattern of UK wealth sector consolidation in recent years. 

“The integration of Investec Wealth & Investment 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,” Paul Stockton, group CEO of Rathbones, said. “Over 80 per cent of clients have been asked for their consent to move their accounts to Rathbones Investment Management from IW&I and response rates are very positive. Run-rate synergy realisation grew to £25.5 million at the end of the third quarter, significantly ahead of the first-year post-combination objective of £15 million.

“Net flows in the quarter reflected the resilience of gross inflows despite the impacts of managing a significant client consent process. Gross outflows have been impacted by the completion of Saunderson House migration, alongside some of the macroeconomic and specific factors we have seen, and which have impacted the industry this year,” Stockton said.

He concluded by reflecting on how the UK government annual budget statement, due on 30 October, has galvanised people into seeking advice from advisors.

“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.