TIDMRAT
RNS Number : 6952X
Rathbone Brothers PLC
06 May 2021
Rathbone Brothers Plc
First quarter trading update
Rathbone Brothers Plc ("Rathbones") announces a trading update
for the three months ended 31 March 2021.
Paul Stockton, Chief Executive of Rathbones, said:
"Total funds under management and administration rose 2.0% in
the first quarter to GBP55.8 billion reflecting continued good
organic growth.
Our Funds business grew strongly, surpassing the GBP10 billion
mark during the period, and combined with improved net organic
inflows in our Investment Management business and positive market
movements to deliver strong income growth.
We continue to deliver on our strategy, progressing our
responsible investing agenda with the addition of four new Rathbone
Greenbank M ulti-Asset Portfolios in the first quarter. As markets
begin to look beyond the pandemic, we will pursue our plans to
strengthen services to clients and advisers and take advantage of
future growth opportunities."
Financial highlights:
- Total funds under management and administration totalled
GBP55.8 billion at the end of the first quarter* (31 December 2020:
GBP54.7 billion).
- GBP45.5 billion in the Investment Management business (31 December 2020: GBP44.9 billion).
- GBP10.3 billion in the Rathbone Funds business (31 December 2020: GBP9.8 billion).
- Total net inflows across Investment Management and Rathbone
Funds were GBP0.7 billion in the first quarter (Q1 2020: GBP0.7
billion which included the acquisition of the Barclays Wealth Court
of Protection business), representing an annualised net growth rate
of 5.1% (Q1 2020: 5.2%).
- Despite an uncertain backdrop, gross organic inflows in
Investment Management totalled GBP1.2 billion in the first quarter
(Q1 2020: GBP1.0 billion), with net inflows of GBP0.2 billion (Q1
2020: nil).
- Rathbone Funds recorded over GBP1.1 billion of gross inflows
in the period, with net inflows of GBP0.5 billion (Q1 2020: GBP0.2
billion). This represents an annualised net organic growth rate of
21.4% (Q1 2020: 10. 7%).
- Underlying net operating income totalled GBP107.3 million for
the three months ended 31 March 2021, an increase of 26.8% from the
GBP84.6 million in the corresponding period last year.
- Investment Management fees were up 40.4% compared to the prior
year due to increased funds under management, improved markets on
the Q1 billing date and the impact of more fee-based income from
the Speirs & Jeffrey acquisition. The FTSE 100 on the principal
charging date was 6737 (Q1 2020: 5416).
- Commissions were flat year on year while net interest income
fell to GBP1.5 million, from GBP3.1m in the prior year owing to a
reduction in Bank of England base rates since March 2020.
- Fees from advisory services and other income increased to
GBP5.1 million (Q1 2020: GBP4.8 million).
- Income in Rathbone Funds, which accrues daily, totalled
GBP13.7 million for the three months ended 31 March 2021, a
substantial increase of 41.2% on the GBP9.7 million reported for
the first quarter in 2020.
- The final dividend for 31 December 2020 of 47 pence per share will be paid on 11 May 2021.
Board:
- Following the early retirement of Mark Nicholls announced on 5
March 2021, Clive Bannister formally succeeds interim chairman, Jim
Pettigrew, at the Rathbones AGM today. As previously noted, Colin
Clark will also today succeed Jim Pettigrew as Senior Independent
Director, subject to regulatory approval.
* Funds under management at the end of the first quarter are
measured at 5 April for Investment Management (to coincide with the
first charging date for Investment Management private clients) and
at 31 March for Rathbone Funds.
Net operating income
3 months ended
3 months ended 31 March 31 December
2021 2020 Change 2020 Change
Investment Management GBPm GBPm % GBPm %
- Fees 69.1 49.2 40.4 67.1 3.0
- Commissions 17.9 17.8 0.6 13.1 36.6
- Net interest income 1.5 3.1 (51.6) 1.4 7.1
- Fees from advisory services(1)
& other income 5.1 4.8 6.3 5.0 2.0
--------- ------ --------- -------- -------
93.6 74.9 25.0 86.6 8.1
Rathbone Funds 13.7 9.7 41.2 13.4 2.2
Underlying net operating income 107.3 84.6 26.8 100.0 7.3
--------- ------ --------- -------- -------
FTSE 100 Index on principal charging
dates(2) 6737 5416 24.4 6461 4.3
MSCI PIMFA Private Investor Balanced
Index on principal charging dates(2) 1718 1389 23.4 1677 2.4
(1) Including income from trust, tax, financial planning
services and Vision Independent Financial Planning.
(2) The principal charging dates for Investment Management
clients are 5 April, 30 June, 30 September and 31 December.
Rathbone Funds income accrues on daily levels of funds under
management.
Funds under management and administration
(i) Investment Management Period ended 5 April 3 months ended
31 December
2021 2020 Change 2020 Change
GBPm GBPm % GBPm %
Opening FUMA (1 January / 1 October) 44,912 42,965 4.5 41,763 7.5
Inflows 1,243 1,469 (15.4) 915 35.8
--------------------------------------------- ------------- -------- ----------- -------- --------
Organic new business 1,215 1,015 19.7 849 43.1
Acquired new business 28 454 (93.8) 66 (57.6)
--------------------------------------------- ------------- -------- ----------- -------- --------
Outflows (1,076) (1,015) 6.0 (965) 11.5
Market effect and investment performance(3) 449 (7,544) (106.0) 3,199 (86.0)
------------- -------- ----------- -------- --------
Closing FUMA 45,528 35,875 26.9 44,912 1.4
------------- -------- ----------- -------- --------
Underlying annualised rate of net
organic growth 1.2% - (1.1%)
Total annualised net organic and
acquired growth 1.5% 4.2% (0.5%)
(ii) Rathbone Funds 3 months ended 31 March 3 months ended
31 December
2021 2020 Change 2020 Change
GBPm GBPm % GBPm %
Opening FUM (1 January / 1 October) 9,820 7,438 32.0 8,730 12.5
Inflows 1,156 767 50.7 1,024 12.9
Outflows (630) (569) 10.7 (474) 32.9
Market effect and investment performance (48) (865) (94.5) 540 (108.8)
------------- -------- ----------- -------- --------
Closing FUM 10,298 6,771 52.1 9,820 4.9
------------- -------- ----------- -------- --------
Annualised net organic growth rate 21.4% 10.7% 25.2%
------------- -------- ----------- -------- --------
Total FUMA(4) 55,826 42,646 30.9 54,731 2.0
------------- -------- ----------- -------- --------
Net flows
Investment Management 167 454 (63.2) (50) 434.0
Rathbone Funds (5) 526 198 165.7 550 (4.4)
------------- -------- ----------- -------- --------
Total 693 652 6.3 500 38.6
------------- -------- ----------- -------- --------
Annualised total net growth rate 5.1% 5.2% 4.0%
(3) Includes internal transfers between Investment Management
and Rathbone Funds.
(4) Includes GBP2.8 billion of funds under execution only
mandates (Q4 2020: GBP2.7 billion), Greenbank funds of GBP2.0
billion (Q4 2020: GBP1.9 billion) and funds managed with a
charitable mandate of GBP6.6 billion (Q4 2020: GBP6.5 billion).
(5) The Global Opportunities Fund now totals GBP3.3 billion, the
Ethical Bond Fund now totals GBP2.4 billion and the Multi Asset
Portfolio fund range now totals GBP2.3 billion. These figures
include UK funds and SICAVs.
(iii) Investment Management; Service 5 April 31 December
level breakdown
2021 2020 Change 2020 Change
GBPm GBPm % GBPm %
Direct 34,277 26,305 30.3 33,678 1.8
Financial Adviser linked 9,630 7,387 30.4 9,347 3.0
----------------------------------------- -------- -------- ------- -------- -------
Total Discretionary 43,907 33,692 30.3 43,025 2.1
Non-Discretionary Investment Management 1,136 1,781 (36.2) 1,392 (18.4)
Execution Only 2,773 1,976 40.3 2,658 4.3
----------------------------------------- -------- -------- ------- -------- -------
Gross Investment Management FUMA 47,816 37,449 27.7 47,075 1.6
Discretionary wrapped funds(6) (2,288) (1,574) 45.4 (2,163) 5.8
----------------------------------------- -------- -------- ------- -------- -------
Total Investment Management FUMA 45,528 35,875 26.9 44,912 1.4
----------------------------------------- -------- -------- ------- -------- -------
(6) Discretionary wrapped funds represent funds operated by
Rathbone Funds, managed by both Investment Management teams and
Rathbone Funds managers.
The MSCI PIMFA Private Investor Balanced Index closed at 1744 on
5 May 2021, an increase of 1.5% since 5 April 2021. Investment
Management fee income in the second quarter is dependent upon the
value of funds under management at 30 June 2021.
The Annual General Meeting is scheduled to be held today at
Rathbones' London offices and the interim results for the six
months to 30 June 2021 will be announced on 28 July 2021. Given the
current COVID-19 situation, shareholders have been requested not to
attend the AGM in person. Instead, a limited number of company
representatives will attend in person to ensure that a valid
meeting is held. A live webcast is in place so that shareholders
can listen to proceedings. The webcast can be accessed using the
following link:
https://www.investis-live.com/rathbone-brothers/605332bd49aa2a0e00777e5c/vnec
.
6 May 2021
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
Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk
Ed Gascoigne-Pees
Julia Tilley
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 1,600 staff in 15 UK locations and Jersey;
its headquarters is 8 Finsbury Circus, London.
www. rathbones.com
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END
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