Rathbones Group PLC on Thursday said the integration of Investec Wealth & Investment was ‘progressing well’ as it reported a rise in funds under management and administration in the first quarter.

In a trading update for the three months ended March, the London-based investment and wealth management said it has made a positive start to 2024.

Rathbones said total FUMA reached £107.6 billion at the end of the first quarter, up 2.2% from £105.3 billion at the end of 2023.

Rathbones said total net flows in wealth management were negative in the quarter as positive inflows in Rathbones were offset by outflows in IW&I.

Rathbones discretionary and managed net inflows for the quarter totalled £0.4 billion, unchanged from a year prior. But IW&I saw net outflows of £0.6 billion.

Net operating income nearly doubled to £223.6 million in the quarter from £117.8 million a year ago, including a contribution of £89.8 million from IW&I. Excluding IW&I, growth was around 14% year-on-year.

Pretax profit in the quarter was £39.1 million, including £9.5 million in relation to integration and acquisition costs.

Rathbones said the integration of IW&I is progressing well with run-rate synergies now £10.6 million, up from the £8.0 million reported in December.

‘While economic uncertainty and headwinds remain in the UK and abroad, Rathbones is well-equipped to navigate challenging market conditions. We remain confident in our integration and synergy targets and are well-positioned to take advantage of the future benefits of the Group’s scale,’ it said.

Rathbones said it continues to expect the underlying operating margin for to be mid-20% and to incur non-underlying costs in line with those stated at the year-end.

Shares in Rathbones fell 0.2% to 1,762.00 pence in London on Thursday.

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