REG - Rathbones Group PLC - FUMA update and notice of results
17/01/2024 07:00
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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
£105.3 billion at 31 December 2023 (30 September 2023: £100.7 billion, 31
December 2022: £60.2 billion) consisting of:
- £48.0 billion in Rathbone Investment Management (RIM) (31 December
2022: £45.1 billion).
- £42.2 billion in IW&I (31 December 2022: £nil).
- £1.3 billion in Saunderson House (31 December 2022: £4.1 billion) as
FUMA in that entity continues to migrate as planned to Rathbones investment
propositions.
- £13.8 billion in Rathbone Asset Management (RAM, formerly Rathbone Unit
Trust Management) (31 December 2022: £11.0 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
£0.4 billion.
- Net outflows in IW&I were £0.3 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 £0.6 billion in the quarter.
Net outflows in RAM single strategy funds of £0.1 billion were resilient
against the wider asset management industry backdrop.
- Market and investment performance added £4.9 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
Q4 ended 31 December 2023 Opening FUMA Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m)
Gross Inflows Gross Outflows
(£m) (£m)
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)
12 months ended 31 December 2023 Opening FUMA Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m)
Gross Inflows Gross Outflows
(£m) (£m)
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
Q4 ended 31 December 2023 Opening FUMA Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m)
Gross Inflows Gross Outflows
(£m) (£m)
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)
12 months ended 31 December 2023 Opening FUMA Net Flows Transfers(1) SHL Migrated Assets Market & Investment Performance (£m) Closing FUMA Ann Net Growth(2)
(£m)
(£m)
(£m)
(£m)
(%)
(£m)
Gross Inflows Gross Outflows
(£m) (£m)
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 £4.0 billion at 31 December
2023 (31 December 2022: £4.1 billion).
(iii) Total Group FUMA
At 31 December At 30 September
2023 2022 Change 2023 Change
£m £m % £m %
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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