REG-Rathbone Brothers Plc : 3rd Quarter Results <Origin Href="QuoteRef">RAT.L</Origin>

RathbonesAnnouncement

18/10/2017 07:05

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 Rathbone Brothers Plc
Funds under management reach £37.5 billion  
Rathbone Brothers Plc ("the Company") announces a trading update for the three
months ended 30 September 2017.

Philip Howell, Chief Executive of Rathbone Brothers Plc, said:

"In a quarter where investment markets remained relatively benign, our total
funds under management grew 2.5% to £37.5 billion in the three months to 30
September 2017. Funds managed by Rathbone Investment Management reached £32.5
billion and within this our ethical investment service, Greenbank, reached
£1.0 billion. Funds under management in our Unit Trusts business reached
£5.0 billion towards the end of the quarter. Both Greenbank and Unit Trusts
have reached these strategic milestones well ahead of plan.

"We continue to progress our strategic initiatives and invest in our core
infrastructure to support client service and meet the demands of forthcoming
regulation. We are well positioned for the future and will continue to pursue
growth opportunities both organically and through acquisition, approaching
each with discipline."

Financial highlights:
* Total funds under management were £37.5 billion at 30 September 2017; up
2.5% from £36.6 billion at 30 June 2017, compared to an increase of 0.8% in
the FTSE 100 Index and 0.8% in the MSCI WMA Private Investor Balanced Index in
the three months ended 30 September 2017. Underlying net operating income was
£70.5 million for the three months ended 30 September 2017, up 7.0% from
£65.9 million in the third quarter of 2016. 
 
* Total net growth of funds under management in Investment Management was
£0.3 billion, representing a total net annualised growth rate of 3.5% (2016:
5.0%). This comprises net organic growth of £0.2 billion (2016: £0.2
billion), and acquired inflows of £0.1 billion for the quarter. Net organic
growth in the third quarter represents an annualised growth rate of 2.6%
(2016: 3.0%) contributing to a 2.9% organic growth rate for the nine month
period to 30 September 2017 (2016: 2.7%). 
 
* Net operating income of £62.5 million in Investment Management for the
three months ended 30 September 2017 was 5.6% higher than the £59.2 million
for the comparable period in 2016. The value of the FTSE 100 Index on the
third quarter charging date was 7373 compared with 6899 a year ago. The MSCI
WMA Private Investor Balanced Index was 1545 and 1457 on the equivalent
dates.  
 
* Funds under management in Unit Trusts at 30 September 2017 were £5.0
billion, up 8.7% from £4.6 billion at 30 June 2017. Net inflows for the
quarter were a record £342 million compared to £170 million a year ago. Net
operating income of £8.0 million for the three months ended 30 September 2017
was 19.4% higher than the £6.7 million for the comparable period in 2016.
            

Net operating income

                                                                          3 months ended 30 September           9 months ended 30 September 
                                                                         2017        2016      Change          2017        2016      Change 
                                                                           £m          £m           %            £m          £m           % 
 Investment Management                                                                                                                      
 - Fees                                                                  47.7        42.7        11.7         140.2       120.0        16.8 
 - Commissions                                                            8.2        10.2      (19.6)          30.1        29.7         1.3 
 - Net interest income                                                    2.9         3.1       (6.5)           8.5         8.8       (3.4) 
 - Fees from advisory services (1 )and other income                       3.7         3.2        15.6          11.2         9.5        17.9 
                                                                         62.5        59.2         5.6         190.0       168.0        13.1 
 Unit Trusts                                                              8.0         6.7        19.4          22.9        18.1        26.5 
 Underlying net operating income                                         70.5        65.9         7.0         212.9       186.1        14.4 
 Average FTSE 100 Index on principal charging dates (2)                  7373        6899         6.9          7339        6498        12.9 
 Average FTSE WMA Balanced Index on principal charging dates (2)         1545        1457         6.0          1538        1386        11.0 
1. Including income from trust, tax, pension advisory 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. Unit Trust income accrues on daily
levels of funds under management.
Funds under management

                                                     3 months ended        9 months ended    
                                                      30 September          30 September     
                                                     2017      2016        2017      2016    
                                                      £m        £m          £m        £m     
 (i) Investment Management                                                                   
 Opening FUM (1 July/1 January)                       31,981    27,256      30,184    26,126 
 Inflows                                                 809       708       2,542     2,010 
 Organic new business                                    742       574       2,311     1,650 
 Acquired new business                                    67       134         231       360 
 Outflows                                              (532)     (367)     (1,663)   (1,118) 
 Market adjustment                                       277     1,703       1,472     2,282 
 Closing FUM (30 September)                           32,535    29,300      32,535    29,300 
                                                                                             
 Underlying annualised rate of net organic growth       2.6%      3.0%        2.9%      2.7% 
 Annualised rate of net inflows                         3.5%      5.0%        3.9%      4.6% 
                                                                                             
 (ii) Unit Trusts                                                                            
 Opening FUM (1 July/1 January)                        4,634     3,334       4,051     3,073 
 Inflows                                                 521       454       1,254     1,030 
 Outflows                                              (179)     (284)       (643)     (601) 
 Market adjustment                                         6       358         320       360 
 Closing FUM (30 September)                            4,982     3,862       4,982     3,862 
                                                                                             
 Total FUM (30 September) (3, 4)                      37,517    33,162      37,517    33,162 
                                                                                             
 Net fund inflows                                                                            
 Investment Management                                   277       341         879       892 
 Unit Trusts                                             342       170         611       429 
 Total                                                   619       511       1,490     1,321 
1. Includes £1,027 million (30 September 2016: £937 million) of execution
only funds, Greenbank funds of £1.0 billion and Charities funds of £4.5
billion. 
 
2. Cash in client portfolios continued to be higher than average at £2.3
billion (2016 average: £1.8 billion). Loans and advances to customers were
£126.0 million at 30 September 2017, up 2.2% on the £123.3 million at 30
June 2017.
The FTSE 100 Index closed at 7516 on 17 October 2017, an increase of 1.9%
since 30 September 2017. Investment Management fee income in the fourth
quarter is dependent upon the value of funds under management at 31 December
2017. 
18 October 2017

For further information contact:

 Rathbone Brothers Plc Tel: 020 7399 0000 email: shelly.patel@rathbones.com   Philip Howell, Chief Executive Paul Stockton, Finance Director Shelly Patel, Investor Relations Manager  Camarco Tel: 020 3757 4984 email: ed.gascoigne-pees@camarco.co.uk    Ed Gascoigne-Pees  

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 1,100 staff in 16 UK locations and Jersey; its headquarters
is 8 Finsbury Circus, London.

rathbones.com (http://www.rathbones.com)
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Source: Rathbone Brothers Plc via Globenewswire