Rathbone Brothers Rathbone Brothers Plc : 1st Quarter Results
May 10 2018 - 2:00AM
UK Regulatory
TIDMRAT
Rathbone Brothers Plc
Rathbones' first quarter net operating income up 6.8%
Rathbone Brothers Plc ("Rathbones") announces a trading update for the
period from 1 January 2018 to 31 March 2018.
Philip Howell, Chief Executive of Rathbones, said:
"Although investment markets fell back a little in the first quarter of
2018, trading was solid with net operating income up 6.8% from the same
period last year. Total funds under management fell 3.3% to GBP37.8
billion during the quarter, compared with decreases in the FTSE 100
Index and the MSCI WMA Private Investor Balanced Index of 6.4% and 3.8%
respectively."
Financial highlights:
-- Total funds under management were GBP37.8 billion at the end of the first
quarter*, down 3.3% from GBP39.1 billion at 31 December 2017. Underlying
net operating income was GBP75.4 million during the quarter, up 6.8% from
GBP70.6 million from the same period last year.
-- Total net organic and acquired growth in Investment Management was GBP199
million during the quarter (2017: GBP318 million), representing a total
net annualised growth rate of 2.4% (2017: 4.2%) and reflecting some
marginally higher outflows. Net organic growth in the first quarter
represents an annualised growth rate of 2.0% compared to 3.3% in the
first three months of 2017.
-- Net operating income of GBP66.6 million in Investment Management for the
first quarter of 2018 was 5.2% higher than the GBP63.3 million for the
comparable period in 2017. The value of the FTSE 100 Index on the first
quarter charging date was 7200 compared with 7332 a year ago. The MSCI
WMA Private Investor Balanced Index remained unchanged at 1538 on the
equivalent dates.
-- Unit Trusts experienced strong net inflows of GBP142 million during the
quarter (2017: GBP109 million). These were offset by market performance
resulting in funds under management remaining stable at GBP5.3 billion
(31 December 2017: GBP5.3 billion). However, net operating income of
GBP8.8 million for the three months ended 31 March 2018 was 20.5% higher
than the GBP7.3 million for the comparable period in 2017.
* Funds under management at the end of the first quarter are measured at
5 April for Investment Management (to coincide with the first key
charging date for Investment Management private clients) and at 31 March
for Unit Trusts.
Net operating income
3 months ended 31 March
2018 2017 Change
Investment Management GBPm GBPm %
- Fees 48.1 46.0 4.6
- Commissions 10.8 11.0 (1.8)
- Net interest income 3.3 2.8 17.9
- Fees from advisory services(1) & other income 4.4 3.5 25.7
66.6 63.3 5.2
Unit Trusts(2) 8.8 7.3 20.5
Net operating income 75.4 70.6 6.8
(1) Including income from trust, tax and advisory services.
(2) Includes GBP0.9 million of managers' box dealing profits (2017:
GBP0.9 million).
Funds under management
(i) Investment Management Period ended 5 April(3)
2018 2017 Change
GBPm GBPm %
Opening FUM (1 January) 33,780 30,184 11.9
Inflows 896 895 0.1
Organic new business 868 825 5.2
Acquired new business 28 70 (60.0)
Outflows (697) (577) 20.8
Market effect and investment performance (1,548) 960 (261.3)
Closing FUM (5 April) 32,431 31,462 3.1
Underlying annualised rate of net organic growth 2.0% 3.3%
Total annualised net organic and acquired growth 2.4% 4.2%
FTSE 100 Index (5 April) 7200 7332 (1.8)
MSCI WMA Private Investor Balanced Index (5
April) 1538 1538 -
(ii) Unit Trusts 3 months ended 31 March
2018 2017 Change
GBPm GBPm %
Opening FUM (1 January) 5,367 4,051 32.5
Inflows 475 355 33.8
Outflows (333) (246) 35.4
Market effect and investment performance (186) 201 (192.5)
Closing FUM (31 March) 5,323 4,361 22.1
Total funds under management(4) 37,754 35,823 5.4
(3) Key charging dates for investment management clients are 5 April,
30 June, 30 September and 31 December. Unit trusts income accrues on
daily levels of funds under management.
(4) Includes GBP1,183 million (2017: GBP967 million) of funds under
execution only mandates.
The FTSE 100 Index closed at 7663 on 9 May 2018, a rise of 6.4% since 5
April 2018, which has increased the value of funds under management.
The Annual General Meeting will be held today at Rathbones' offices and
the interim results for the six months to 30 June 2018 will be announced
on 25 July 2018.
10 May 2018
For further information contact:
Rathbone Brothers Plc
Tel: 020 7399 0000
Email: shelly.patel@rathbones.com
Philip Howell, Chief Executive
Paul Stockton, Finance Director
Shelly Patel, Head of Investor Relations
Camarco
Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk
Ed Gascoigne-Pees
Hazel Stevenson
Rathbone Brothers Plc
Rathbone Brothers Plc ("Rathbones"), through its subsidiaries, is a
leading provider of high-quality, personalised investment and wealth
management services for private clients, charities and trustees. Our
services include discretionary investment management, unit trusts,
banking and loan services, financial planning, unitised portfolio
services, and UK trust, legal, estate and tax advice.
Rathbones has over 1,100 staff in 15 UK locations and Jersey; its
headquarters is 8 Finsbury Circus, London.
rathbones.com http://www.rathbones.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Rathbone Brothers Plc via Globenewswire
http://www.rathbones.com/
(END) Dow Jones Newswires
May 10, 2018 02:00 ET (06:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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