TIDMRAT
RNS Number : 3699K
Rathbones Group PLC
05 May 2022
Rathbones Group Plc
First quarter trading update
Rathbones Group Plc ("Rathbones") announces a trading update for
the three months ended 31 March 2022.
Paul Stockton, Group Chief Executive of Rathbones, said:
" N et operating income has been strong in the first quarter,
increasing 12.3% year-on-year and 4.0% on the previous three
months. Discretionary and managed net inflows were resilient in a
market impacted by inflation fears and a general repositioning
towards value.
Rathbones remains focused on delivering the strategic plans we
set out at our full-year results, with digital investment and the
integration of Saunderson House both progressing well. There remain
significant opportunities in our sector and with a strong balance
sheet and clear direction, Rathbones is well-placed to take
advantage of future opportunities."
Financial highlights:
- Total funds under management and administration totalled
GBP64.7 billion at the end of the first quarter* (31 December 2021:
GBP68.2 billion).
- GBP47.9 billion in the Investment Management business (31 December 2021: GBP50.3 billion).
- GBP12.1 billion in the Rathbone Funds business (31 December 2021: GBP13.0 billion).
- GBP4.7 billion in Saunderson House (31 December 2021: GBP4.9 billion).
- Discretionary and managed net inflows totalled GBP0.3 billion
(Q1 2021: GBP0.4 billion), representing an annualised growth rate
of 2.5% (Q1 2021: 4.0%, Q4 2021: 1.9%).
- Net inflows into multi-asset funds were strong at GBP0.1
billion (Q1 2021: GBP0.1 billion, Q4 2021: GBP0.1billion),
representing annual net growth of 20.4%.
- Underlying net operating income totalled GBP120.5 million for
the three months ended 31 March 2022, an increase of 12.3% from the
GBP107.3 million in the corresponding period last year.
- Investment Management fees increased 4.5% to GBP72.2 million.
- Commissions totalled GBP14.9 million (Q1 2021: GBP17.9
million), in line with trading volumes.
- As anticipated, net interest income grew 40.0% to GBP2.1
million, reflecting the increase in Bank of England base rates over
the quarter.
- Fees from advisory services and other income increased to
GBP14.7 million, reflecting the acquisition of Saunderson House (Q1
2021: GBP5.1 million).
- Income in Rathbone Funds totalled GBP16.6 million for the
period ended 31 March 2022 (2021: GBP13.7 million).
- The final dividend for 31 December 2021 of 54 pence per share will be paid on 10 May 2022.
* 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.
Additional Comments:
Board
As previously announced, James Dean will step down at the Annual
General Meeting (AGM) today as he has served nine years on the
board. James has made a huge contribution to the board, both as a
non-executive director and chair of the audit committee. As part of
the board's succession plans, Iain Cummings will succeed James as
chair of the audit committee, subject to regulatory approval.
Annual General Meeting
The Annual General Meeting will be held today at 9:30am at our
London head office at 8 Finsbury Circus, London EC2M 7AZ.
Interim results
The interim results for the six months to 30 June 2022 will be
announced on 28 July 2022.
Detailed financial information:
Net operating income
3 months ended
3 months ended 31 March 31 December
2022 2021 Change 2021 Change
Investment Management GBPm GBPm % GBPm %
- Fees 72.2 69.1 4.5 74.6 (3.2)
- Commissions 14.9 17.9 (16.8) 11.6 28.4
- Net interest income 2.1 1.5 40.0 0.6 250.0
- Fees from advisory services(1)
& other income 14.7 5.1 188.2 11.7 25.6
-------- -------- -------- ------- --------
103.9 93.6 11.0 98.5 5.5
Rathbone Funds 16.6 13.7 21.2 17.4 (4.6)
Net operating income 120.5 107.3 12.3 115.9 4.0
-------- -------- -------- ------- --------
MSCI PIMFA Private Investor Balanced
Index on principal charging dates(2) 1806 1718 5.1 1849 (2.3)
(1) Including income from trust, tax, financial planning
services, Vision Independent Financial Planning and Saunderson
House.
(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) Breakdown of FUMA and flows by service level
Market & Annual Annual
Opening Net Net service investment Closing Annual net growth net growth
FUMA flows level transfers performance FUMA net growth (Q1 2021) (Q4 2021)
Quarter ended 5 April % %
2022 GBPm GBPm GBPm GBPm GBPm %
Discretionary service 49,249 223 (45) (2,516) 46,911
Bespoke portfolios 47,985 172 (64) (2,474) 45,619 1.4 2.5 0.7
Managed via in-house
funds 1,264 51 19 (42) 1,292 16.3 19.2 13.5
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Multi-asset funds 1,991 101 - (100) 1,992 20.4 42.2 24.3
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Total discretionary
& managed 51,240 324 (45) (2,616) 48,903 2.5 4.0 1.9
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Non-discretionary
service 1,026 (14) (30) (34) 948 (5.4) (23.1) (5.0)
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Total wealth
management 52,266 310 (75) (2,650) 49,851 2.4 3.2 1.8
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Single-strategy funds 8,316 (65) - (680) 7,571 (3.1) 17.3 15.7
Execution only &
banking 2,660 (68) 76 (37) 2,631 (10.2) (10.9) (3.9)
Total group (pre
acquisitions) 63,242 177 1 (3,367) 60,053 1.1 4.2 3.3
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Saunderson House 4,917 (26) - (216) 4,675 (2.1) - -
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
Total group 68,159 151 1 (3,583) 64,728 0.9 4.2 3.5
------- ------ ---------------- ----------- ------- ----------- ----------- -----------
(ii) Breakdown of Rathbone Investment Management FUMA and flows
by channel
Market & Annual Annual
Opening Net Net service investment Closing Annual net growth net growth
FUMA flows level transfers performance FUMA net growth (Q1 2021) (Q4 2021)
Quarter ended 5 April % %
2022 GBPm GBPm GBPm GBPm GBPm %
Total direct 37,800 64 (22) (1,898) 35,944 0.7 1.3 0.1
Total financial
adviser
linked 11,449 159 (23) (618) 10,967 5.5 8.4 4.1
------- ------ --------------- ------------ ------- ----------- ----------- -----------
Total discretionary
service 49,249 223 (45) (2,516) 46,911 1.8 2.9 1.1
Non-discretionary
service 1,026 (14) (30) (34) 948 (5.4) (23.1) (5.2)
Execution only &
banking 2,660 (68) 76 (37) 2,631 (10.2) (10.9) (3.9)
------- ------ --------------- ------------ ------- ----------- ----------- -----------
Total Investment
Management 52,935 141 1 (2,587) 50,490 1.1 1.4 0.7
------- ------ --------------- ------------ ------- ----------- ----------- -----------
At 5 April At 31 December
(iii) Total Group FUMA
2022 2021 Change 2021 Change
GBPm GBPm % GBPm %
Rathbone Investment Management
Gross FUMA 50,490 47,816 5.6 52,935 (4.6)
Of which: discretionary wrapped
funds(3) (2,593) (2,288) 13.3 (2,683) (3.4)
47,897 45,528 5.2 50,252 (4.7)
Rathbone Funds 12,156 10,298 18.0 12,990 (6.4)
Saunderson House 4,675 0 100.0 4,917 (4.9)
-------- -------- ------- --------- -------
Total Group FUMA 64,728 55,826 15.9 68,159 (5.0)
-------- -------- ------- --------- -------
(3) Discretionary wrapped funds represent funds operated by
Rathbone Funds, managed by both Rathbone Investment Management
teams and Rathbone Funds managers
The MSCI PIMFA Private Investor Balanced Index closed at 1763 on
4 May 2022, a decrease of 2.4% since 5 April 2022. Investment
Management fee income in the second quarter is dependent upon the
value of funds under management at 30 June 2022.
5 May 2022
For further information contact:
Rathbones Group Plc
Tel: 020 7399 0000
Email: shelly.patel@rathbones.com
Paul Stockton, Group Chief Executive
Jennifer Mathias, Group Chief Financial Officer
Shelly Patel, Head of Investor Relations
Camarco
Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk
Ed Gascoigne-Pees
Julia Tilley
Rathbones Group 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 1,900 staff in 15 UK locations and Jersey;
its headquarters is 8 Finsbury Circus, London, EC2M 7AZ.
www.rathbones.com
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