REG - Rathbones Group PLC - FUMA update and notice of results
18/01/2023 07:00
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RNS Number : 0350N Rathbones Group PLC 18 January 2023
Rathbones Group Plc
Funds under management and administration (FUMA) update for the year ended 31
December 2022 and notice of results
Rathbones Group Plc ("Rathbones") delivered a further quarter of sustained net
inflows with discretionary and managed net inflows totalling £347 million in
Q4 2022 (an annualised growth rate of 3.1%) at the end of a challenging year
for investors.
- Discretionary and managed net inflows were resilient in the year at
£1.3 billion (2021: £1.8 billion), representing a growth rate of 2.6% (2021:
4.1%).
- Discretionary service net inflows totalled £0.9 billion (2021:
£1.3 billion).
- Net inflows into our multi-asset fund range were strong, totalling
£0.4 billion and equating to net growth for the year of 20% (2021: £0.5
billion).
- Total FUMA were £60.2 billion at 31 December 2022 (31 December 2021:
£68.2 billion), reflecting continuing net inflows offset by a negative market
movement over the year.
- £45.1 billion in the Investment Management business was down 10.2%
from £50.3 billion at 31 December 2021, in line with the MSCI PIMFA Private
Investor Balanced Index which also decreased 10.2% over the year.
- £11.0 billion in Rathbone Funds, was down from £13.0 billion at 31
December 2021, with continued market volatility impacting market performance
and investor behaviour across the industry. Despite significant outflows
across the wider asset management sector, net outflows in our single strategy
fund range remained low at £0.4 billion in the year, representing 4.5% of
opening FUMA (2021: net inflows of £1.2 billion).
- £4.1 billion in Saunderson House, was down from £4.9 billion at 31
December 2021, with net outflows of £0.2 billion (2021: nil) in line with
expectations. The integration of Saunderson House is progressing in line with
plan, with new propositions launched during the year beginning to be taken up
by clients in the fourth quarter.
- Successful delivery of the first phases of our digital transformation
programme, supporting greater efficiency and improving client and investment
manager experiences.
Outlook
Whilst economic uncertainties are expected to prevail into 2023, we will
remain focused on client engagement and delivery on our strategic priorities.
Benefits from ongoing investment in our digital capability and wider financial
planning propositions will further enable organic growth. Our strong balance
sheet and clear direction means we remain well-placed to consider inorganic
growth opportunities.
Notice of results
Our preliminary statement of annual results for the year ended 31 December
2022 will be published on Wednesday, 1 March 2023. 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
Q4 ended 31 December 2022 Opening FUMA Inflows Outflows Net Flows Service Level Transfers(1) Market Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(£m)
(£m)
(%)
Movement (£m)
Discretionary service 42,476 951 (697) 254 (16) 1,609 44,322
Bespoke portfolios 41,193 892 (673) 219 (70) 1,552 42,894 2.1
Managed via in-house funds 1,283 59 (24) 35 54 56 1,428 10.9
Multi-asset funds 1,973 198 (104) 94 - 92 2,159 19.1
Total discretionary & managed 44,449 1,148 (801) 347 (16) 1,701 46,481 3.1
Non-discretionary service 764 5 (28) (23) (4) 21 757 (12.0)
Total wealth management 45,213 1,153 (829) 323 (20) 1,723 47,238 2.9
Single-strategy funds 6,248 316 (377) (61) - 287 6,474 (3.9)
Execution only & banking 2,317 70 (120) (50) 69 68 2,404 (8.6)
Total group (pre acquisitions) 53,778 1,539 (1,326) 212 49 2,078 56,116 1.6
Saunderson House 4,151 40 (107) (67) (49) 81 4,117 (6.5)
Total group 57,929 1,579 (1,433) 145 - 2,159 60,233 1.0
12 months ended 31 December 2022 Opening Inflows Outflows Net Flows Service Level Transfers Market Closing FUMA Net Growth
(£m)
(£m)
(£m)
(£m)
(£m)
(%)
FUMA Movement (£m)
(£m)
Discretionary service 49,249 3,535 (2,617) 918 (175) (5,670) 44,322
Bespoke portfolios 47,985 3,306 (2,519) 787 (322) (5,557) 42,894 1.6
Managed via in-house funds 1,264 229 (98) 131 147 (113) 1,428 10.4
Multi-asset funds 1,991 790 (391) 399 - (231) 2,159 20.0
Total discretionary & managed 51,240 4,325 (3,008) 1,316 (175) (5,901) 46,481 2.6
Non-discretionary service 1,026 19 (95) (76) (81) (112) 757 (7.4)
Total wealth management 52,266 4,344 (3,103) 1,240 (256) (6,013) 47,238 2.4
Single-strategy funds 8,316 1,624 (1,998) (374) - (1,468) 6,474 (4.5)
Execution only & banking 2,660 220 (460) (241) 305 (321) 2,404 (9.1)
Total group (pre acquisitions) 63,242 6,187 (5,561) 626 49 (7,801) 56,116 1.0
Saunderson House(3) 4,917 287 (526) (239) (49) (512) 4,117 (4.9)
Total group 68,159 6,474 (6,087) 387 - (8,313) 60,233 0.6
(1) Service Level Transfers represent client FUMA which has transferred
from one service to another within the group during the period.
(2) Annualised net growth in flows calculated as net flows/opening FUMA.
(3) Our continued review of Saunderson House data definitions and new
business disclosures has identified the need for a further restatement of our
Q3 YTD position, driven by alignment of Saunderson House practices with
Rathbones. Net flows previously reported at Q3 2022 were understated by £40m
and market performance was overstated by £40m. This has now been reflected in
the YTD table above.
(ii) Breakdown of Rathbone Investment Management FUMA and flows by channel
Opening Inflows Outflows Net Flows Service Level Transfers Market Closing FUMA Ann Net Growth
(£m)
(£m)
(£m)
(£m)
(£m)
(%)
FUMA Movement (£m)
(£m)
Q4 ended 31 December 2022
Total direct 32,344 663 (550) 113 (123) 1,305 33,639 1.4
Total financial adviser linked 10,132 288 (147) 141 106 304 10,683 5.6
Total discretionary service 42,476 951 (697) 254 (16) 1,609 44,322 2.4
Execution only & banking 2,317 70 (120) (50) 69 68 2,404 (8.6)
Non-discretionary service 764 5 (28) (23) (4) 20 757 (12.0)
Total Investment Management 45,557 1,026 (845) 180 49 1,697 47,483 1.6
12 months ended 31 December 2022 Opening Inflows Outflows Net Flows Service Level Transfers Market Closing FUMA Net Growth
(£m)
(£m)
(£m)
(£m)
(£m)
(%)
FUMA Movement (£m)
(£m)
Total direct 37,800 2,401 (2,034) 367 (280) (4,249) 33,638 1.0
Total financial adviser linked 11,449 1,134 (583) 551 105 (1,420) 10,685 4.8
Total discretionary service 49,249 3,535 (2,617) 918 (175) (5,670) 44,322 1.9
Execution only & banking 2,660 220 (460) (241) 305 (321) 2,404 (9.1)
Non-discretionary service 1,026 19 (95) (76) (81) (112) 757 (7.4)
Total Investment Management 52,935 3,774 (3,173) 601 49 (6,101) 47,483 1.1
(iii) Total Group FUMA
At 31 December At 30 September
2022 2021 Change 2022 Change
£m £m % £m %
Rathbone Investment Management Gross FUMA 47,483 52,935 (10.3) 45,557 4.2
Of which: discretionary wrapped funds(1) (2,372) (2,683) (11.6) (2,403) (1.3)
45,111 50,252 (10.2) 43,154 4.5
Rathbone Funds 11,005 12,990 (15.3) 10,624 3.6
Saunderson House 4,117 4,917 (16.3) 4,151 (0.8)
Total Group FUMA 60,233 68,159 (11.6) 57,929 4.0
1. Discretionary wrapped funds represent funds operated by Rathbone Funds,
managed by both Rathbone Investment Management teams and Rathbone Funds
managers
18 January 2023
For further information contact:
Rathbones Group Plc
Paul Stockton, Group Chief Executive
Jennifer Mathias, Group Chief Financial Officer
Sarah Lewandowski, Head of Investor Relations
Tel: 07702605524
email: sarah.lewandowski@rathbones.com
Camarco
Ed Gascoigne-Pees
Julia Tilley
Tel: 020 3757 4984
email: ed.gascoigne-pees@camarco.co.uk
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 2,200 staff in 14 UK locations and Jersey; its
headquarters is 8 Finsbury Circus, London.
www.rathbones.com
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