Rathbones is the latest manager to see falling profits in the first half of the 2022 financial year, though it managed to maintain inflows amid a volatile market environment.

Profits at the 280-year-old asset manager dropped to £50m, down from £62.9m in June last year, as market volatility hit investor sentiment.

Total funds under management across the group closed the period at £58.9bn, down from £59.2bn in June 2021, with assets in its funds business falling from £11.4bn to £10.9bn. 

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Funds under management in Rathbones' investment management business also declined, from £47.8bn to £43.8bn.

The results come as a record number of wealth and asset managers report a decline in profits and assets under management, including Swiss fund group GAM, Brewin Dolphin and AJ Bell.

Despite a tumultuous market backdrop, flows for the first half of the year were positive, finishing at £600m, but represent a decline compared to the £1bn of inflows in the first half of 2021, with net inflows from its discretionary service dropping from £700m in the first half of 2021, to £400m in the six months to June 2022.

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Flows into its multi-asset fund range declined from £300m to £200m, but income at its fund business increased from £28.7m in 2021, to £31.8m as of June 2022.

It increased its interim dividend 3.7% to 28p, compared to 27p during the same period last year. It will be paid on 4 October 2022, the manager confirmed. 

Paul Stockton, group chief executive at Rathbones, said: "The first half of 2022 has been a turbulent one for investors but despite this volatility, net inflows remained positive in the period.

"Rathbones remains focused on delivering the strategic plans we set out at our full-year results. Investment in our digital and data capabilities remains critical to our future success which, supported by high client retention and a robust balance sheet, places Rathbones in a strong position to navigate short-term market fluctuations and take advantage of future growth opportunities in the sector."