TIDMRAT
RNS Number : 6637M
Rathbone Brothers PLC
10 January 2019
Rathbone Brothers Plc
Trading Update and Notice of Results
Rathbone Brothers Plc ("Rathbones") announces a trading update
for the three months ended 31 December 2018.
Whilst the final quarter of 2018 reflected weaker investment
markets, total year end funds under management and administration*
benefitted from the recent acquisition of Speirs & Jeffrey.
-- Total funds under management and administration at 31
December 2018 were GBP44.1 billion, up 12.8% from GBP39.1 billion
at 31 December 2017. The FTSE 100 Index decreased 12.5% and the
MSCI WMA Private Investor Balanced Index decreased 7.2% over
2018.
-- Net inflows across the group in 2018 totalled GBP8.5 billion
(2017: GBP2.1 billion), which represents 21.6% (2017: 6.0%) of
opening funds under management and administration and includes the
impact of GBP6.8bn of acquired FUM driven primarily by the
acquisition of Speirs and Jeffrey.
-- Funds under management and administration in Investment
Management were GBP38.5 billion at 31 December 2018, up 13.9% from
GBP33.8 billion at 31 December 2017; including GBP6.4 billion of
funds related to Speirs & Jeffrey (30 September 2018: GBP6.7
billion). Underlying net organic inflows in Investment Management
were 3.4% of opening funds under management and administration for
the year ended 31 December 2018 (2017: 3.0 %).
-- In the fourth quarter, funds under management and
administration in Investment Management decreased by 6.8% from
GBP41.3 billion to GBP38.5 billion primarily reflecting weaker
investment markets. The FTSE 100 decreased 10.4% and the MSCI WMA
Private Investor Balanced Index decreased 7.9% during the same
period.
-- Net organic inflows in Investment Management during the
fourth quarter were higher than expected at GBP574 million (Q4
2017: GBP254 million), including a number of discretionary mandates
that are expected to be managed for a relatively short period. This
represents an elevated annualised rate of net organic growth of
5.6% (2017: 3.1%) for the three months ended 31 December 2018.
-- Funds managed by Unit Trusts were GBP5.6 billion at 31
December 2018, up 5.7% from GBP5.3 billion at 31 December 2017,
despite the falls in investment markets during the year. Total net
fund inflows of GBP123 million in the fourth quarter of 2018 (Q4
2017: GBP272 million) reflected a more difficult trading
environment for asset managers generally. Full year net inflows
were GBP543 million (2017: GBP883 million), representing 10.1% of
opening funds under management.
Speirs & Jeffrey
Work to meet operational performance targets is proceeding well
such that the payment of contingent share consideration of 0.6
million new Rathbones shares is now expected to be made in the
second quarter of 2019 rather than by December 2019 as previously
anticipated. We continue to work well with our colleagues at Speirs
& Jeffrey to ensure a smooth transition into the group.
Outlook
Whilst market conditions can reasonably be expected to be
volatile in 2019, we will continue to invest selectively for the
longer term in the skills and infrastructure necessary to improve
our operational efficiency and deliver high quality services to our
clients.
Notice of results
The Company will issue its preliminary statement of annual
results for the year ended 31 December 2018 on Thursday 21 February
2019.
*In this announcement, all previous references to funds under
management (FUM) have been changed to funds under management and
administration (FUMA) to reflect the higher proportion of
non-discretionary mandates following the acquisition of Speirs
& Jeffrey.
Funds under management and administration
3 months ended Year ended
31 December 31 December
2018 2017 2018 2017
GBPm GBPm GBPm GBPm
(i) Investment Management
Opening FUMA (1 October / 1 January) 41,274 32,535 33,780 30,184
Net inflows 591 290 7,931 1,169
-------------------------------------- -------- ------- -------- -------
Organic new business 574 254 1,145 902
Acquired new business 17 36 6,786 267
-------------------------------------- -------- ------- -------- -------
Market adjustment (3,409) 955 (3,255) 2,427
-------- ------- -------- -------
Closing FUMA (31 December) 38,456 33,780 38,456 33,780
-------- ------- -------- -------
Underlying annualised rate of
net organic growth(1) 5.6% 3.1% 3.4% 3.0%
Annualised rate of net inflows 5.7% 3.6% 23.5% 3.9%
(ii) Unit Trusts
Opening FUM (1 October / 1 January) 6,006 4,982 5,367 4,051
Net inflows 123 272 543 883
Market adjustment (486) 113 (267) 433
-------- ------- -------- -------
Closing FUM (31 December) 5,643 5,367 5,643 5,367
-------- ------- -------- -------
Total FUMA (31 December) (1) 44,099 39,147 44,099 39,147
-------- ------- -------- -------
Net fund inflows
Investment Management 591 290 7,931 1,169
Unit Trusts 123 272 543 883
-------- ------- -------- -------
Total 714 562 8,474 2,052
-------- ------- -------- -------
1 Includes GBP2.1 billion (31 December 2017: GBP1.2 billion) of
execution only funds, Greenbank funds of GBP1.2 billion (31
December 2017: GBP1.1 billion) and funds managed with a charitable
mandate of GBP5.3 billion (31 December 2017: GBP4.7 billion).
10 January 2019
For further information contact:
Rathbone Brothers Plc
Tel: 020 7399 0000
Email: shelly.patel@rathbones.com
Philip Howell, Chief Executive
Paul Stockton, Group Finance Director/Managing Director,
Rathbone Investment Management
Shelly Patel, Head of Investor Relations
Camarco (Communications adviser to Rathbones)
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 1,400 staff in 15 UK locations and Jersey;
its headquarters is 8 Finsbury Circus, London.
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END
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