TIDMRAT
RNS Number : 2114Z
Rathbone Brothers PLC
09 January 2020
Rathbone Brothers Plc
Funds under management and administration update (FUMA) and
Notice of Results
Rathbone Brothers Plc ("Rathbones") announces a FUMA update for
the year ended 31 December 2019.
- Total FUMA at 31 December 2019 were GBP50.4 billion, up 14.3%
from GBP44.1 billion at 31 December 2018. The FTSE 100 Index
increased 12.1% and the MSCI WMA Private Investor Balanced Index
increased 13.1% over 2019.
- GBP43.0 billion in the Investment Management business, up
11.7% from GBP38.5 billion at 31 December 2018.
- GBP7.4 billion in the Unit Trusts business, up 32.1% from GBP5.6 billion at 31 December 2018.
- Total net inflows across the group in 2019 were GBP0.6 billion
(2018: GBP8.5 billion). Total net inflows in 2018 included the
impact of GBP6.8 billion of acquired FUMA driven primarily by the
acquisition of Speirs and Jeffrey.
- Gross organic inflows in Investment Management for the year
totalled GBP3.3 billion (2018: GBP3.8 billion) in spite of weaker
investor sentiment and no reoccurrence of the larger shorter term
mandates won in 2018. Gross outflows for the year totalled GBP3.9
billion (2018: GBP2.7 billion). The last quarter of 2019 saw the
exit of some lower margin mandates following the integration of
Speirs & Jeffrey and additional outflows as some pension and
other institutional mandates were repositioned by trustees.
- Full year net inflows in Unit Trusts of GBP943 million (2018:
GBP543 million) were particularly strong against a difficult market
backdrop for asset managers. This represents 16.7% of opening funds
under management.
Outlook
Although we continue to expect macro-economic conditions to
drive volatility more generally across investment markets in the
shorter term, we remain focussed on pursuing the strategic
objectives we set out in October 2019.
Notice of results
The Company will issue its preliminary statement of annual
results for the year ended 31 December 2019 on Thursday 20 February
2020. A presentation to analysts will be held at 8 Finsbury Circus,
London.
Funds under management and administration
3 months ended Year ended
31 December 31 December
2019 2018 2019 2018
GBPm GBPm GBPm GBPm
(i) Investment Management
Opening FUMA (1 October / 1 January) 42,422 41,274 38,456 33,780
Inflows 820 1,336 3,510 10,598
-------------------------------------- -------- -------- -------- --------
Organic new business 794 1,319 3,278 3,812
Acquired new business 26 17 232 6,786
-------------------------------------- -------- -------- -------- --------
Outflows (1,147) (745) (3,861) (2,667)
Market adjustment 870 (3,409) 4,860 (3,255)
-------- -------- -------- --------
Closing FUMA (31 December) 42,965 38,456 42,965 38,456
-------- -------- -------- --------
Underlying annualised rate of
net organic growth(1) (3.3%) 5.6% (1.5%) 3.4%
Annualised rate of net inflows (3.1%) 5.7% (0.9%) 23.5%
(ii) Unit Trusts
Opening FUM (1 October / 1 January) 7,028 6,006 5,643 5,367
Inflows 642 457 2,298 1,889
Outflows (348) (334) (1,355) (1,346)
Market adjustment 116 (486) 852 (267)
-------- -------- -------- --------
Closing FUM (31 December) 7,438 5,643 7,438 5,643
-------- -------- -------- --------
Total FUMA (31 December)(1) 50,403 44,099 50,403 44,099
-------- -------- -------- --------
Net inflows
Investment Management (327) 591 (351) 7,931
Unit Trusts 294 123 943 543
-------- -------- -------- --------
Total (33) 714 592 8,474
-------- -------- -------- --------
1 Includes GBP2.4 billion (31 December 2018: GBP2.1 billion) of
execution only funds, Greenbank funds of GBP1.6 billion (31
December 2018: GBP1.2 billion) and funds managed with a charitable
mandate of GBP6.1 billion (31 December 2018: GBP5.3 billion).
(iii) Investment Management; Service level breakdown
31 30 September 31 December Change Change
December 2019 2018 3 12 months
2019 GBPm GBPm months %
GBPm %
-------------------------------- ---------- ------------- ------------ -------- -----------
Direct 31,013 30,311 26,642 2.3 16.4
Financial Adviser linked(2) 8,735 8,567 7,515 2.0 16.2
-------------------------------- ---------- ------------- ------------ -------- -----------
Total Discretionary 39,748 38,878 34,157 2.2 16.4
Non-Discretionary Investment
Management 2,550 2,721 3,332 (6.3) (23.5)
Execution Only 2,412 2,466 2,158 (2.2) 11.8
-------------------------------- ---------- ------------- ------------ -------- -----------
Gross Investment Management
FUMA 44,710 44,065 39,647 1.5 12.8
Discretionary wrapped funds(3) (1,745) (1,643) (1,191) 6.2 46.5
-------------------------------- ---------- ------------- ------------ -------- -----------
Total Investment Management
FUMA 42,965 42,422 38,456 1.3 11.7
-------------------------------- ---------- ------------- ------------ -------- -----------
2 Of the GBP7.8 billion of financial adviser linked business
that we reported in the 2018 report and accounts, GBP7.5 billion is
included in Discretionary and GBP0.3 billion in Execution Only.
3 Holdings of our Unit Trusts in Rathbone Investment Management
portfolios and funds where the management of the assets is
undertaken by Rathbone Investment Management teams.
9 January 2020
For further information contact:
Rathbone Brothers Plc
Tel: 020 7399 0000
Email: shelly.patel@rathbones.com
Paul Stockton, Chief Executive
Jennifer Mathias, Group Finance Director
Shelly Patel, Head of Investor Relations
Camarco (Communications adviser to Rathbones)
Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk,
hazel.stevenson@camarco.co.uk
Ed Gascoigne-Pees
Hazel Stevenson
Rathbone Brothers Plc
Rathbones provides individual investment and wealth management
services for private clients, charities, trustees and professional
partners. We have been trusted for generations to manage and
preserve our clients' wealth. Our tradition of investing and acting
responsibly has been with us from the beginning and continues to
lead us forward. Our ambition is to be recognised as the UK's most
responsible wealth manager.
Rathbones has over 1,400 staff in 15 UK locations and Jersey;
its headquarters is 8 Finsbury Circus, London.
rathbones.com
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END
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