First Quarter Trading Update
Operating income grew 9.4% in Q1 2026, but FUMA fell to £113.6bn and net outflows continued.
- Operating income £240.7m (prior £220.1m)
- FUMA £113.6bn (prior £115.6bn)
- Wealth Management FUMA £105.2bn (prior £106.2bn)
- Net outflows £0.8bn (prior £0.8bn)
- Wealth Management net interest income £23.2m (prior £16.1m)
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Jonathan Sorrell, Group Chief Executive Officer of Rathbones:
"Operating income grew 9.4% compared with Q1 2025, reflecting improved market levels relative to the prior year. Underlying flows in our wealth proposition continued to stabilise during the first quarter against a volatile market backdrop. Excluding execution-only services, wealth flows were broadly flat in Q1 after absorbing an estimated increase of £0.2 billion of tax-driven withdrawals as a consequence of the October 2024 Budget, activity that was concentrated in January.
At group level, net outflows in the quarter largely reflected this elevated tax-related activity, together with ongoing outflows from low-margin execution-only services and the continued challenging operating environment in UK retail active asset management.
We remain focused on executing our strategy with discipline and consistency of purpose as we pursue our ambition to be the best wealth manager in the UK, by far."
Financial Highlights:
- Total operating income for the quarter was £240.7 million, up 9.4% from £220.1 million in Q1 2025.
- Funds under management and administration ("FUMA") totalled £113.6 billion at the quarter end (31 December 2025: £115.6 billion) comprising:
- £105.2 billion in the Wealth Management segment (31 December 2025: £106.2 billion).
- £15.7 billion of gross FUM in the Asset Management segment (31 December 2025: £16.6 billion), equivalent to £8.4 billion on a consolidated basis, after excluding Wealth Management FUMA invested in Asset Management funds (31 December 2025: £9.4 billion).
- Total net outflows in the quarter were £0.8 billion (Q1 2025: £0.8 billion), comprising:
- Wealth Management net outflows of £0.4 billion (Q1 2025: £0.5 billion), with £0.2 billion of this related to execution‑only services.
- Asset Management net outflows of £0.4 billion (Q1 2025: £0.3 billion).
Annual General Meeting and interim results dates:
Annual General Meeting
The Annual General Meeting (AGM) will be held today, 7 May, at 9:00am at our London head office at 30 Gresham Street, London, EC2V 7QN. Similar to last year, the Board has made arrangements to enable members to attend and participate in the meeting electronically should they wish to do so. Instructions on how to attend and participate electronically are set out in the Notice of AGM.
Interim results
The interim results for the six months to 30 June 2026 will be announced on 29 July 2026.
Detailed financial information
Operating income:
| Quarter ended 31 March | 2026 £m | 2025 £m | Change £m | Change % |
|---|---|---|---|---|
| Wealth Management | ||||
| Fees | 151.9 | 137.1 | 14.8 | 10.8% |
| Commissions | 26.9 | 24.3 | 2.6 | 10.7% |
| Net interest income 1 | 23.2 | 16.1 | 7.1 | 44.1% |
| Fees from advisory services 2 | 15.9 | 14.7 | 1.2 | 8.2% |
| Other income 1 | 1.3 | 6.9 | (5.6) | (81.2)% |
| 219.2 | 199.1 | 20.1 | 10.1% | |
| Asset Management | 21.5 | 21.0 | 0.5 | 2.4% |
| Operating income | 240.7 | 220.1 | 20.6 | 9.4% |
- Net interest income should be considered in conjunction with 'Other income' which includes net interest margin on client money balances. In 2025, prior to the IW&I migration, the income generated from IW&I client money deposits was reported within 'Other income'. This is now included in 'Net interest income'. 2. Including income from financial planning services, trust and tax.
Funds under management and administration:
Segment FUMA
| Opening FUMA | Gross inflows | Gross outflows | Net flows | Transfers | Market & investment performance | Closing FUMA | Annualised Net Growth | |
|---|---|---|---|---|---|---|---|---|
| Quarter ended 31 March and 5 April 2026 | £m | £m | £m | £m | £m | £m | £m | (%) |
| Wealth Management 3 | 106,205 | 2,767 | (3,194) | (427) | - | (584) | 105,194 | (1.6) |
| Asset Management | ||||||||
| Gross segment FUMA inclusive of intra-group | 16,600 | 865 | (1,115) | (250) | - | (667) | 15,683 | (6.0) |
| Intra-group FUMA 4 | (7,188) | (437) | 269 | (168) | - | 113 | (7,243) | 9.3 |
| Asset Management excluding intra-group | 9,412 | 428 | (846) | (418) | - | (554) | 8,440 | (17.8) |
| Total Group | 115,617 | 3,195 | (4,040) | (845) | - | (1,138) | 113,634 | (2.9) |
- FUMA at 5 April 2026 of £105.2 billion includes £51.8 billion in respect of which the first quarter fees were applied using the FUMA value on 31 March 2026. The value of this FUMA at 31 March 2026 was £51.0 billion 4. Intragroup FUMA comprises assets managed by the Asset Management segment which relates to propositions of the Wealth Management segment.
- Breakdown of segmental FUMA and flows
| Quarter ended 31 March and 5 April 2026 | Opening FUMA £m | Gross inflow £m | Gross outflow £m | Net flows £m | Transfers £m | Market and investment performance £m | Closing FUMA £m | Annualised Net Growth % |
|---|---|---|---|---|---|---|---|---|
| Discretionary & Managed | 94,707 | 2,497 | (2,726) | (229) | (30) | (621) | 93,827 | (1.0) |
| MPS & Select services | 4,073 | 81 | (57) | 24 | - | (69) | 4,028 | 2.4 |
| Execution only | 7,425 | 189 | (411) | (222) | 30 | 106 | 7,339 | (12.0) |
| Wealth Management 3 | 106,205 | 2,767 | (3,194) | (427) | - | (584) | 105,194 | (1.6) |
| Multi Asset funds | 9,361 | 513 | (456) | 57 | - | (296) | 9,122 | 2.4 |
| Single Strategy funds | 7,239 | 352 | (659) | (307) | - | (371) | 6,561 | (17.0) |
| Asset Management - gross segmental FUMA | 16,600 | 865 | (1,115) | (250) | - | (667) | 15,683 | (6.0) |
| Intra-group FUMA 4 | (7,188) | (437) | 269 | (168) | - | 113 | (7,243) | 9.3 |
| Asset Management excluding intra-group | 9,412 | 428 | (846) | (418) | - | (554) | 8,440 | (17.8) |
| Total Group | 115,617 | 3,195 | (4,040) | (845) | - | (1,138) | 113,634 | (2.9) |
Rathbones manages £113.6 billion of client assets, of which £15.7 billion is managed by its asset management arm, Rathbones Asset Management Limited. A FTSE 250 company (LSE:RAT), Rathbones has over 3,300 employees, including over 700 investment managers and financial planners, in 21 offices across the UK and the Channel Islands, providing its clients with high-quality, personalised wealth management services.
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