REG - Rathbones Group PLC - First quarter trading update
05/05/2022 07:00
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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:
"Net 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 £64.7
billion at the end of the first quarter* (31 December 2021: £68.2 billion).
- £47.9 billion in the Investment Management business (31 December
2021: £50.3 billion).
- £12.1 billion in the Rathbone Funds business (31 December 2021:
£13.0 billion).
- £4.7 billion in Saunderson House (31 December 2021: £4.9
billion).
- Discretionary and managed net inflows totalled £0.3 billion (Q1 2021:
£0.4 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 £0.1 billion
(Q1 2021: £0.1 billion, Q4 2021: £0.1billion), representing annual net
growth of 20.4%.
- Underlying net operating income totalled £120.5 million for the three
months ended 31 March 2022, an increase of 12.3% from the £107.3 million in
the corresponding period last year.
- Investment Management fees increased 4.5% to £72.2 million.
- Commissions totalled £14.9 million (Q1 2021: £17.9 million), in
line with trading volumes.
- As anticipated, net interest income grew 40.0% to £2.1 million,
reflecting the increase in Bank of England base rates over the quarter.
- Fees from advisory services and other income increased to £14.7
million, reflecting the acquisition of Saunderson House (Q1 2021: £5.1
million).
- Income in Rathbone Funds totalled £16.6 million for the period
ended 31 March 2022 (2021: £13.7 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 31 March 3 months ended 31 December
2022 2021 Change 2021 Change
Investment Management £m £m % £m %
- 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
Quarter ended 5 April 2022 Opening FUMA Net flows Net service level transfers Market & investment performance Closing FUMA Annual net growth Annual net growth (Q1 2021) Annual net growth (Q4 2021)
£m
£m
£m
£m
£m
%
% %
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
Quarter ended 5 April 2022 Opening FUMA Net flows Net service level transfers Market & investment performance Closing FUMA Annual net growth Annual net growth (Q1 2021) Annual net growth (Q4 2021)
£m
£m
£m
£m
£m
%
% %
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
£m £m % £m %
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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