TIDMRAT
RNS Number : 9049Z
Rathbones Group PLC
17 January 2024
Rathbones Group Plc
fourth quarter trading update
funds under management and administration ("FUMA") update for
the year ended 31 december 2023 and notice of results.
- Total FUMA, including Investec Wealth & Investment
(IW&I), reached GBP105.3 billion at 31 December 2023 (30
September 2023: GBP100.7 billion, 31 December 2022: GBP60.2
billion) consisting of:
- GBP48.0 billion in Rathbone Investment Management (RIM) (31 December 2022: GBP45.1 billion).
- GBP42.2 billion in IW&I (31 December 2022: GBPnil).
- GBP1.3 billion in Saunderson House (31 December 2022: GBP4.1
billion) as FUMA in that entity continues to migrate as planned to
Rathbones investment propositions.
- GBP13.8 billion in Rathbone Asset Management (RAM, formerly
Rathbone Unit Trust Management) (31 December 2022: GBP11.0
billion).
- Total net flows in wealth management were flat in the quarter
as positive inflows in Rathbones offset anticipated outflows in
IW&I:
- Rathbones discretionary and managed net inflows for the quarter totalled GBP0.4 billion.
- Net outflows in IW&I were GBP0.3 billion, reflecting the
anticipated impact of investment manager departures that
predominantly occurred prior to the announcement of the combination
with Rathbones. Since then, investment manager turnover has been
low, engagement with colleagues at IW&I has been very positive,
and integration work remains on track.
- Net inflows into our multi-asset fund range, comprising both
direct and managed solutions via in-house funds, totalled GBP0.6
billion in the quarter. Net outflows in RAM single strategy funds
of GBP0.1 billion were resilient against the wider asset management
industry backdrop.
- Market and investment performance added GBP4.9 billion to FUMA
in the quarter.
Outlook
Economic uncertainties are expected to persist in 2024, however,
Rathbones will continue to remain focused on client engagement as
we deliver toward our key strategic objectives.
Until the IW&I business is fully integrated, the existing
client billing dates of each of the investment management
businesses will be maintained. The principal charging dates for
Rathbone Investment Management clients are 5 April, 30 June, 30
September and 31 December. The principal charging dates in 2024 for
IW&I are 29 February, 31 May, 31 August and 30 November.
Rathbones begins 2024 as an enlarged group that remains
well-positioned to take advantage of both benefits of scale and
future growth opportunities.
Notice of results
Our preliminary statement of annual results for the year ended
31 December 2023 will be published on
Wednesday, 6 March 2024. A presentation to analysts will be held
on the same day.
Funds under management and administration
(i) Breakdown of FUMA and flows by service level
Opening Gross Gross Net SHL Migrated Closing Ann Net
FUMA Inflows Outflows Flows Transfers(1) Assets FUMA Growth(2)
(GBPm) (GBPm) Market
& Investment
Q4 ended 31 December Performance
2023 (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (%)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Rathbones Investment
Management 45,705 1,158 (880) 278 59 626 2,091 48,759 2.4
Bespoke portfolios 42,630 1,050 (779) 271 (43) 279 1,867 45,004 2.5
Managed via
in-house
funds 3,075 108 (101) 7 102 347 224 3,755 0.9
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Multi-asset funds(3) 2,345 280 (166) 114 - - 86 2,545 19.4
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Rathbones
discretionary
& managed 48,050 1,438 (1,046) 392 59 626 2,177 51,304 3.3
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Non-discretionary
service 732 11 (9) 2 (25) - 43 752 1.1
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Investec W&I (from
1 October)(4) 40,781 796 (1,123) (327) (115) - 1,928 42,267 (3.2)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Saunderson House(5) 2,211 15 (113) (98) - (631) 108 1,590 (17.7)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total wealth
management 91,774 2,260 (2,291) (31) (81) (5) 4,256 95,913 (0.1)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Single-strategy funds 6,313 299 (412) (113) - - 477 6,677 (7.2)
Execution only &
banking 2,594 86 (164) (78) 81 5 148 2,750 (12.0)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total group (4) 100,681 2,645 (2,867) (222) - - 4,881 105,340 (0.9)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Opening Gross Gross Net SHL Migrated Closing Ann Net
FUMA Inflows Outflows Flows Transfers(1) Assets FUMA Growth(2)
(GBPm) (GBPm) Market
& Investment
12 months ended 31 Performance
December 2023 (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (%)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Rathbones
Investment
Management 44,322 4,216 (3,824) 392 (214) 2,389 1,870 48,759 0.9
Bespoke
portfolios 42,894 3,804 (3,556) 248 (896) 1,107 1,651 45,004 0.6
Managed via
in-house
funds 1,428 412 (268) 144 682 1,282 219 3,755 10.1
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Multi-asset
funds(3) 2,159 896 (597) 299 - - 87 2,545 13.8
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Rathbones
discretionary
& managed 46,481 5,112 (4,421) 691 (214) 2,389 1,957 51,304 1.5
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Non-discretionary
service 757 40 (62) (22) (38) - 55 752 (2.9)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Investec W&I (from
1 October)(4) 40,781 796 (1,123) (327) (115) - 1,928 42,267
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Saunderson House(5) 4,117 119 (510) (391) - (2,396) 260 1,590 (9.5)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total wealth
management 92,136 6,067 (6,116) (49) (367) (7) 4,200 95,913 (0.1)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Single-strategy
funds 6,474 1,275 (1,838) (563) - - 766 6,677 (8.7)
Execution only &
banking 2,404 327 (541) (214) 367 7 186 2,750 (8.7)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total group (4) 101,014 7,669 (8,495) (826) - - 5,152 105,340 (0.8)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
(ii) Breakdown of Investment Management FUMA and flows by
channel
Gross Gross Ann
Opening Inflows Outflows Net SHL Migrated Closing Net
FUMA Flows Transfers(1) Assets FUMA Growth(2)
(GBPm) (GBPm) Market
& Investment
Q4 ended 31 December Performance
2023 (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (%)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total direct 32,948 747 (615) 132 (21) - 1,352 34,411 1.6
Total financial
adviser
linked 12,757 411 (265) 146 80 626 739 14,348 4.6
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total discretionary
service 45,705 1,158 (880) 278 59 626 2,091 48,759 2.4
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Execution only &
banking 2,594 86 (164) (78) 81 5 148 2,750 (12.0)
Non-discretionary
service 732 11 (9) 2 (25) - 43 752 1.1
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total Investment
Management 49,031 1,255 (1,053) 202 115 631 2,282 52,261 1.6
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Investec W&I (from
1 October)(4) 40,781 796 (1,123) (327) (115) - 1,928 42,267 (3.2)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total Investment
Management for
enlarged
group (4) 89,812 2,051 (2,176) (125) - 631 4,210 94,528 (0.6)
--------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Gross Gross Ann
Opening Inflows Outflows Net SHL Migrated Closing Net
FUMA Flows Transfers(1) Assets FUMA Growth(2)
(GBPm) (GBPm) Market
& Investment
12 months ended 31 Performance
December 2023 (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (GBPm) (%)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total direct 33,639 2,709 (2,848) (139) (247) - 1,158 34,411 (0.4)
Total financial
adviser
linked 10,683 1,507 (976) 531 33 2,389 712 14,348 5.0
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total discretionary
service 44,322 4,216 (3,824) 392 (214) 2,389 1,870 48,759 0.9
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Execution only &
banking 2,404 327 (541) (214) 367 7 186 2,750 (8.9)
Non-discretionary
service 757 40 (62) (22) (38) - 55 752 (2.9)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total Investment
Management 47,483 4,583 (4,427) 156 115 2,396 2,111 52,261 (0.3)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Investec W&I (from
1 October) (4) 40,781 796 (1,123) (327) (115) - 1,928 42,267
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
Total Investment
Management for
enlarged
group (4) 88,264 5,379 (5,550) (171) - 2,396 4,039 94,528 (0.2)
------------------- -------- -------- --------- -------- ------------ ------------ ------------ -------- ---------
1. Transfers represent client FUMA which has transferred from
one service to another and other intra-group movements.
2. Annualised net growth in flows calculated as net
flows/opening FUMA.
3. Net inflows into multi-asset funds include direct flows and
flows into managed solutions via in-house funds.
4. Opening FUMA for Investec W&I is from 1 October 2023.
5. Total funds under advice by Saunderson House, including those
clients transferred to fellow group companies totalled GBP4.0
billion at 31 December 2023 (31 December 2022: GBP4.1 billion).
(iii) Total Group FUMA
At 31 December At 30 September
---------------------------------------- ------------------------ -----------------
2023 2022 Change 2023 Change
GBPm GBPm % GBPm %
---------------------------------------- ------- ------- ------ --------- ------
Rathbones Investment Management Gross
FUMA 52,261 47,483 10.1 49,031 6.6
Of which: invested in RAM discretionary
wrapped funds(6) (4,290) (2,372) 80.9 (3,631) 18.1
Rathbones Asset Management 13,770 11,005 25.1 12,547 9.7
Saunderson House 1,590 4,117 (61.4) 2,211 (28.1)
Of which: invested in RAM discretionary
wrapped funds(7) (243) - - (246) (1.2)
---------------------------------------- ------- ------- ------ --------- ------
Total FUMA excluding Investec W&I 63,088 60,233 4.7 59,912 5.3
---------------------------------------- ------- ------- ------ --------- ------
Investec W&I 42,267 - - 40,781 3.6
Of which: invested in RAM discretionary
wrapped funds(8) (15) - - (12) 25.0
---------------------------------------- ------- ------- ------ --------- ------
Total Group FUMA for enlarged group 105,340 - - 100,681 4.6
---------------------------------------- ------- ------- ------ --------- ------
6. Discretionary wrapped funds represent RAM funds which are
held within portfolios managed by RIM.
7. Discretionary wrapped funds represent RAM funds which are
held within portfolios managed by Saunderson House teams.
8. Discretionary wrapped funds represent RAM funds which are
held within portfolios managed by Investec W&I teams.
17 January 2024
For further information contact:
Rathbones Group Plc
Paul Stockton, Group Chief Executive Officer
Iain Hooley, Group Chief Financial Officer*
Shelly Patel, Head of Investor Relations
Tel: 020 7399 0071
Email: shelly.patel@rathbones.com
Camarco
Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4984
Email: ed.gascoigne-pees@camarco.co.uk
*subject to regulatory approval
Rathbones Group Plc
Rathbones provides 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 for
everyone's tomorrow has been with us from the beginning and
continues to lead us forward.
Rathbones has over 3,500 employees in 23 locations across the UK
and Channel Islands; its headquarters is 8 Finsbury Circus, London,
EC2M 7AZ.
www.rathbones.com
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